Three-Quarters of Consumers Pay for a Maximum of 3 Streaming Services, a Disadvantage for New Platforms Entering the Market — Including Quibi and HBO Max
Three-quarters (76%) of people pay for just 3 or fewer streaming services, according to a new survey report from Visual Objects, a visual guide to finding and hiring the best creative firms.
Breaking it down, the survey found that half (50%) of people pay for 2 to 3 streaming services and one quarter (26%) pay for 1, while only 16% invest in more than 3.
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This could be a potential stumbling block for new platforms entering the market, especially as the competitive pool increases every year.
The Majority of Customers Spend Under $50 Per Month in Streaming Services
In the survey, 73% of consumers indicated a monthly investment of less than $50 per month for streaming services.
Furthermore, up-and-coming competitors will be up against media giants such as Netflix, Amazon Prime Video, and Hulu. These companies hold large market shares, so breaking into the industry will already be a challenge.
With only 20% of consumers currently spending more than $50 per month on streaming subscriptions, there may not be enough room in customers’ budgets for platforms such as recently launched Quibi and HBO Max to compete.
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In fact, more people are spending on the lower side of the scale. Just over a third (39%) of people pay $11 to $25 per month, while a quarter (24%) pay $26 to $50 per month for their streaming subscriptions.
Additionally, HBO Max, which launched two weeks ago, and Quibi, which launched earlier this year, are entering the market in the middle of a global pandemic, adding yet another potential disadvantage to their plate.
