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.
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.
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.