As more subscription streaming video services enter the market, the potential total cost for consumers keeps going up.
According to a new survey, though, consumers may be willing to pay significantly more to get the services they want. KPMG – an audit, tax and advisory services firm – surveyed more than 2,000 subscribers, and found that they’d be willing to pay 50% more than what they already shell out. On average, consumers pay $22 per month for streaming services, and they’d be willing to tack on another $11 per month.
"The fact that consumers are willing to pay 50 percent more, on average, provides a critical marker for providers as our study indicates a high degree of price sensitivity," said Michelle Wroan, KPMG national media sector leader, in a statement.
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Among the survey respondents, who ranged in ages from 18 to 60, price was the most important factor they considered when choosing a streaming service. Consumers aged 18-24 ranked ad-free service a close second, followed by content, while 25- to 60-year-old consumers listed content a distant second, followed by ease of access, according to KPMG.
The survey found that just under 70% of respondents ages 18-24 and nearly 80% of those 25-60 currently pay $10-$40 per month for streaming subscriptions. Across age groups, when considering additional streaming services, most people would be willing to pay up to $20 more per month, while others would not be willing to increase their monthly spend at all.
"Assuming the price is right, content remains a key differentiator, and that's why the major players have acquired content and lined up high-profile content production teams," Wroan said.
Recent SVOD launches, including Apple TV+ and Disney+, have been priced competitively at $4.99/month and $6.99/month, respectively. In the meantime, the upcoming HBO Max will be priced at $14.99/month (same as HBO Now), putting it at the high end of the range for SVODs.