The Average Video Streamer Has 3.4 Services and Pays $8.53 Each
With so many streaming options available, how many does the average household subscribe to? In the U.S., 3.4, and in the U.K. 2.9. That data comes from a report on streaming service adoption and cancellation that subscription billing services company Vindicia commissioned from nScreenMedia.
Households are gravitating to lower priced options when they stream. In the U.S, the average cost of service is $8.53, while the average is £6.61 in the U.K.
People seem to be happy with what they're getting, staying on board for a long time: In the U.S, 64% have been with their oldest service for a year or more, and they cite content, value, discoverability, and original movies and shows as their four chief reasons for keeping subscriptions.
With service aggregators expected to play a greater role in the crowded streaming market, the report looks at the success of Amazon Channels. It notes that three-quarters of Amazon Prime members use the video service, and one-third of U.S. respondents with Prime Video subscriptions have purchased an add-on service through Amazon Channels. HBO, Starz, and Showtime are the most popular selections.
“The study shows that some customers find an aggregator such as Amazon Channels a convenient way to sign up for some services, however, most continue to sign up directly with direct-to-consumer services," says Colin Dixon, founder and chief analyst of nScreenMedia. "B2C businesses must stand out from the competition as they fight to win new customers and upsell and retain existing customers. Then, they need to retain customers as long as possible by reducing both voluntary and involuntary churn. Smart companies will turn to data, such as demographic and customer journey data, to help them make decisions that win customers and accelerate growth.”
The report's data was created by Troubadour Research and Consulting, which surveyed 1,000 streaming customers in the U.S. and 500 in the U.K. For more, download the full report for free (registration required).
More cold water on the financial side of streaming video: The average household spends $8 per month on streaming services, and that number hasn't budged in three years.
The future belongs to blended servcies. Creating an IP transformation that relies on multicast-assisted ABR streaming is a potential key to quality improvements and cost savings.
HBO Now and Starz enter the top five, showing the popularity of premium original content to subscribers, says Parks Associates.
Sling TV will deliver the opening day kickoff address at Streaming Media West 2018, explaining how it uses personalization and consumer choice to drive monetization.