Netflix (NASDAQ: NFLX), HBO Now and Hulu are some of the "most important" paid online subscriptions to consumers, well ahead of their paid subscriptions to other services such as streaming music and shopping services, a new survey by Vindicia revealed. What's more, 90 percent of adults surveyed by the online billing services provider said they were interested in upgrading to higher subscription tiers with added privileges like discounts, exclusive offers and access to premium content.
But don't be blinded by those dollar signs yet. A majority of those consumers who want to upgrade -- 84 percent -- are willing to pay just $1.99 extra for those value-added bonuses. About 76 percent said they would pay as much as $3.99 extra.
Vindicia commissioned Widmeyer Communications to conduct the survey over a four-day period in January, asking questions of 1,000 adults across the U.S. who have at least one paid online subscription.
Why would customers want to upgrade a service, and why would they stick to certain dollar limits? Vindicia CEO Gene Hoffman said that as long as subscribers perceive they're getting good value for the money they spend, they'll keep the service. "Our survey found that despite the notion that consumers don't want to add significant financial obligations to their lives, they are very willing to pay for the services they value," he said.
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(Source: "Consumer Demand for Value-Added Subscription Services," Vindicia & Widmeyer Communications) |
Those who do like a specific service also tend to use it the most often: Vindicia found that 30 percent of users engaged with their most-utilized subscription service -- be it OTT video, music or shopping -- at least 20 hours per week.
What was interesting was that survey respondents rated personalization of their service as the least important factor in their decision to subscribe. The most important factor in subscribing: convenience, followed by value, cost savings, and selection.
Among survey participants who had recently cancelled a subscription, two major reasons influenced their decision: "not wanting the financial obligation," and being able to find the content or product they wanted for free elsewhere, the report said.
For more:
- see the release
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