The number of subscriptions per person falls by 14% globally, although in Spain it grows by 3%
July 16 () –
The growth of streaming platforms is slowing down and their consumption by users in 2023 has increased by 40%, that is, nine percentage points less than last year, according to the ‘Global Streaming Study 2023’ prepared by the consulting firm Simon-Kucher, which points to market saturation as one of the main reasons for this situation.
For this study, which was carried out last May, around 12,000 consumers from 12 countries (Australia, Brazil, China, France, Germany, India, the Netherlands, Singapore, Spain, Sweden, the United Kingdom and the United States) were surveyed about their behaviors and preferences as far as streaming platforms are concerned.
Among the conclusions of the analysis of the responses of those surveyed is that, globally, 12% of consumers claim to have decreased their consumption of streaming platforms, while the number of subscriptions per user has dropped by 14%. in year-on-year terms, up to 2.4 per person.
However, the trend observed in Spain goes in the opposite direction to that registered globally given that the number of subscriptions to streaming platforms by users in the country has increased by 3% this year compared to last year. previous course.
“While these platforms have grown in recent years, we now see evidence of market saturation: a large number of providers are fighting for consumers’ entertainment time and budget,” said partner and global CTO, Simon-Kucher Media and Telecommunications, Lisa Jaeger.
“As consumers become more price sensitive, cancellations will also become more likely, unless service providers can meet consumer expectations and demonstrate the value of their product,” he added.
The study also points out that, compared to the previous year, the ‘streaming’ of movies and series has been maintained, given that 78% of consumers spend more than two hours a week watching movies, while 70% do so with series.
Likewise, the consumption of live events by users is “significantly less” since “only 41%” spend more than two hours a week on this type of content.
THE PRICE, MAIN FACTOR
The Simon-Kucher study also points out that compared to the previous year, the purchasing criteria “have hardly changed” given that price continues to be the main factor and, even, “has gained some importance”, followed by the variety of the content available on the platform in question.
“The importance that users give to the frequency of premieres has decreased by four percentage points, possibly due to the amount of new services and content on the market. Willingness to pay for streaming services decreased by 8% from average, this is not the case in Spain, where this budget remained stable compared to 2022”, the consultant highlighted.
Thus, in India, the United States, Brazil, Spain and Sweden, consumers already exceed their streaming budgets with existing subscriptions, so to add a new one “they are likely to cancel an existing one.”
In this sense, the study reveals that in order to contract a new subscription, 37% of users would cancel an existing one, while 38% of those surveyed would not cancel one that they already had “nor would they make cuts elsewhere” when subscribing to a new streaming service.
“Compared to last year, the intention to cancel an existing subscription increased by three percentage points, indicating greater market saturation,” the authors of the analysis have highlighted.
To this is added that around 30% of those surveyed canceled a subscription to a streaming platform in the last year and also that 40% intend to do so in 2024.
