Almost three-quarters of global video customers plan to stop paying for streaming pay-TV services within five years, a new study from Grabyo has found.
Grabyo’s ‘Value of Video Report 2020: The Consumer Strikes Back’ report used data from 13,000 consumers across 11 territories including the UK, France, Germany, Italy, Spain, US, Brazil, Argentina, Thailand, Japan and Australia.
The report asked consumers about their spending habits on TV and video services, how they value subscriptions, and future plans to pay for video.
As the streaming wars begin to take shape in 2020, the global penetration of online streaming has reached 55% of consumers, surpassing pay-TV adoption at 50%.
Of the global consumers who plan to stop paying for pay-TV, or have already cut the cord, 26% reported the number one reason was the price of services. Streaming is more affordable and more attractive.
The report found that 66% of UK consumers spend up to £20 per month on video services. 30% of UK customers report that all their video spend is for online streaming services.
The growing popularity of streaming is highlighted in the subscription to multiple services, with 28% of UK customers subscribing to two or more online video services. This compares with 35% of consumers in the U.S, and 32% across Europe with multiple online streaming subscriptions.
The report also highlights the amount consumers are willing to pay for online streaming services. In the UK, 40% of consumers state they are willing to pay up to £35 per month for online video services, this rises to 47% in the U.S, that are willing to pay up to $35 monthly.
Choice of what to watch, flexible subscription options and a low price point mean consumers are looking to spend smaller amounts on multiple services tailored to their interests. This ceiling on monthly video spend indicates that consumers may be willing to subscribe to up to four or five online video services, if the price is right.
The video industry has been gearing up for the streaming wars with the entrance of major players including Disney, Apple, NBC Universal and WarnerMedia (HBO). The impact of these new services is reflected in consumer feedback in the report.
13% of UK video customers plan to subscribe to the new Disney+ service when it launches in March this year, in the U.S, 24% of consumers have already signed up to the service, more than 28 million customers.
Netflix is the dominant player on a global basis. It has reached 71% penetration in the UK market, 66% in the US and a combined 53% across the rest of Europe’s ‘big five’ markets. Amazon Prime Video has reached 44% of the UK market, 42% in the US and 40% across the rest of Europe’s big five.
Across the UK and Europe, Grabyo’s new study also highlights the rapid growth in online streaming subscriptions across older demographic groups. Since 2019, online video subscriptions have grown 63% in the 65+ age group.
Gareth Capon, Grabyo CEO, explains: “2020 will be the year we see the true impact of the streaming wars on viewing habits and what this means for the wider video industry. Broadcasters, rights holders and publishers need to cater to an audience that is moving away from traditional TV. Flexibility, access and price are important to consumers, which means delivering a multi-platform video strategy that reflects these needs. The transition to cloud services will support this shift, but these changes need to accelerate. Our latest report shows streaming is no longer just for younger demographics, the viewing preferences of all consumers are beginning to align.”
Download the report here.