Trade Desk: Streaming Subscription
Fatigue Sets In|
majority of Americans (59 percent) are not willing to pay more than $20
a month for streaming TV services, according to a recent survey of more
than 2,600 U.S. consumers by The Trade Desk. Furthermore, 75 percent of
consumers will not pay more than $30 a month. As more TV content
providers launch new streaming services in 2020, these results highlight
the subscription fatigue threshold for TV streaming services, where
on-demand movies, TV shows and live events can be accessed by connected
devices such as smart TVs and mobile devices.
Other key findings of the survey include:
More than half of U.S. households (53 percent) subscribe to Netflix,
followed by Amazon Prime (43 percent) and Hulu (29 percent).
The leading cause of
frustration with TV advertising among streaming subscribers is having to
watch the same commercial repeatedly (cited by 46 percent of
More than half (53 percent) of
U.S. consumers would be open to watching ads (every other episode of
their favorite show) if it meant lowering the cost of subscription
More than two-thirds (68
percent) of U.S. consumers (with no preference to tailored TV ads) would
be willing to watch ads relevant to their interests if it meant watching
fewer ads overall.
More than half (51 percent) of
respondents who watch new episodes of their streaming TV show on an app,
after it premieres, watch on a smart TV.
As more U.S. consumers watch TV
content via streaming services online, content providers are under
pressure to produce new premium content that drives membership and
viewership. This research suggests, however, that there are hard limits
to consumer appetite for subscription-based services. As a result,
streaming companies must decide whether and how to incorporate
advertising-supported tiers to their platform.
The survey indicates a willingness from consumers for streaming services
supported by ads, particularly if the format and pacing of commercial
breaks differ from traditional TV content. More than half (53 percent)
of respondents are willing to watch ads every other episode to lower
their monthly costs on a device that doesn’t show any ads. Forty percent
of consumers would prefer ads tailored to their interests and
preferences, but, among those who said they wouldn’t, that number
increases to more than two-thirds (68 percent) if it meant they would
see fewer ads.
consumers experiencing subscription fatigue and unwilling to subscribe
to more than one or two premium services, broadcasters have to figure
out how to continue to fund this new golden age of TV,” said Brian
Stempeck, Chief Strategy Officer, The Trade Desk. “At the same time,
consumers are willing to view ads if it means their subscription costs
go down, even more so if those ads are relevant to their interests and
are just not the same ads over and over again. This indicates that ads
will fund the future of streaming TV, and that broadcasters and
advertisers have an opportunity to improve the advertising experience in
a way that simply is not possible with traditional, linear TV.”
While consumers have a limit to how much they are willing to spend on
streaming – an increasing concern given the proliferation of streaming
services – the research also shows that nearly half (46 percent) of
Americans do not want to see the same ad repeated multiple times and
more than one-third (36 percent) wish there were fewer ad breaks.
Despite the mobile nature of streaming apps, consumers have shown they
still prefer to view content on the largest screen in their home – the
television. More than half (51 percent) of those consumers who watch new
episodes of their favorite shows on an app after it premieres watch a TV
show on their connected televisions, rather than a mobile device or on
their personal computer.