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While older generations spend an average of US$45 (RM215) a month on streaming services, Gen Z and Millennials spend over US$10 (RM47) more. Nevertheless, more than half of these younger users believe they spend too much on streaming services.
Although prices are on the rise, all generations continue to pay for streaming services, but younger people are looking for alternatives to reduce their spending.
Younger generations spend more on streaming services than their elders, but find them too expensive, according to a study conducted by The Harris Poll on behalf of Tubi. The poll surveyed 2,503 adults who watch at least one hour of streaming video per week, between Dec 22, 2023, and Jan 5, 2024.
According to the survey, Generation Z and Millennials spend an average of US$57 (RM272) per month on streaming, compared with US$45 (RM215) for Generation X and Baby Boomers. On the other hand, spending on TV subscriptions is higher among older generations, with an average of US$81 (RM387) per month for Gen X and Baby Boomers, compared to US$54 (RM258) for Gen Z and Millennials.
However, more than half of Gen Z and Millennials feel they spend too much on streaming services. 58% of those surveyed said they would rather watch ads than pay more for an ad-free service, while 62% prefer ad-supported free streaming.
What’s more, 71% of Generation Z and Millennials say they have cancelled subscriptions that required additional payment to access more content.
Separate research, this time by Deloitte, recently highlighted young people’s exasperation with streaming platform prices. In fact, for a third of Americans, SVOD platforms’ content offer is not worth the price.
Libby Rodney, chief strategy officer of The Harris Poll, told Axios: “In an age where every dollar counts, the rise of ad-supported streaming platforms is a testament to consumers’ savvy pursuit of value without sacrificing content quality.”
Younger generations are willing to pay for streaming services, but they’re looking for alternatives to reduce their spending. Ad-supported streaming could be one solution to meet this demand.
According to Morning Consult’s latest report, more than three in five consumers (64%) subscribing to at least five video streaming services consider it important to reduce their spending in this area over the coming year. – AFP Relaxnews
