Commentary

Pricey Streaming Platforms Don't Always Deliver Higher Value - Is That Right?

Consumers evaluating streaming platforms face a difficult task.

Sure, they may focus on one hit show, such as Hulu's “Handmaid's Tale.”

But what about about the remainder -- everything on the platform?

What does an entire library of product -- new hit shows, library off-network series as well as movies and original, made-for-streaming movies or off-theatrical films -- mean in terms of “value” to consumers?

Ampere Analysis conducted a study to determine the best “value,” and it gave a surprising nod to Paramount+ over everything else. According to cableTV.com, the streaming app has over 36,000 titles -- TV shows and movies.

One report called this analysis "whacky."

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Ampere Analysis says it used “popularity and critical rating metrics” to find the relative market value of content for the price a streaming service charges viewers for access.

So at just $5.94 (in terms of weighted price) -- versus a $8.62 market-value price -- Paramount+ is the big winner. Some key elements, it says, are the long-running CBS procedural crime drama series including the “NCIS” and “CSI” franchises. But this also includes older library shows such as “Star Trek” as well as classic movies, like “The Godfather.”

In second place is Disney+ -- which can especially rely on the strength of its Lucasfilm and Marvel Cinematic Universe and other big-time movie content.

Ampere has Disney at a $7.99 weighted price tag versus $9.42 in content value. At its debut in 2019 Disney+ had 500 films and 7,500 TV episodes.

Still, all this may be tough for consumers to wrap their minds around.

One can tell streaming consumers that a user's library contains thousands of TVs and/or movies-- and that they should sign on. Perhaps other value factors should be considered -- such as  how many new shows consumers can binge-watch over a period of time.

For most of us, what are currently big hit shows might tell us that Netflix should be at a reasonably high level -- especially considering that it still dominates Nielsen measurement listings week after week when it comes to all categories -- original shows, movies, and acquired programming.

For Netflix, the weighted price tag is $13.90 a month with a predicted market value of $14.60.

And there is another key element to consider: Netflix, HBO Max, and Amazon Prime Video are almost double the price of services such as Apple TV+ (4.99), Discovery+ ($5.44), and Paramount+ ($5.94).

Perhaps another factor should be included down the line: Consider the current streaming market -- one where new ad options are being launched.

How about including, say, advertising interruptions per show, per movie? Is there a better overall quality factor that should be thrown into the mix here?

1 comment about "Pricey Streaming Platforms Don't Always Deliver Higher Value - Is That Right?".
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  1. Gabriel Greenberg from Octillion, December 16, 2022 at 3:08 p.m.

    this is interesting from a consumer standpoint. From an advertiser standpoint with attribution in mind, we see a demonstrably stronger performance across several SVOD platforms compared to FAST on a very consistant basis and for the last 18 months

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