NEW

New data
continues to show that consumers want to drive down the cost of total entertainment spend.
But how exactly?
Typically, in the streaming world, that means moving to lower cost, ad-supported streaming of all types -- premium streaming
platforms (Hulu, Netflix, Prime Video and the like) as well as so-called no-cost FAST platforms.
These services -- not-so-premium streaming -- include Tubi, Pluto TV, Roku and Amazon FreeVee, among other growing competitors. Even then, total entertainment
cost from all platforms can still amount to $150 a month -- not including another $60 or so a month for broadband access.
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So where are the savings?
Consumers are continually
readjusting their home-entertainment packaging by mixing and matching individual streaming platforms, no-cost FAST platforms, extremely pared-down traditional pay TV monthly packages -- cable,
satellite, telco, virtual -- or other platforms.
All this begs the question: Are consumer entertainment subscription monthly fees just being redistributed in new, but not completely
significant, cost-saving ways?
A recent TiVO survey estimates total overall spending on video services is down $30 year-over-year to an average $140.06 -- with pay TV subscriptions at $178.06
(from $211.92 in 2022), and broadband subscriptions at $65.16 (up from $62.30 in 2022).
So an 18% reduction in overall spending on video services seems like a good deal.
At the same
time, TiVo says consumers are not narrowing their total number of video services much -- down to 9.1 compared to 10.9 a year ago.
From the TV networks/streaming services side of things, they
are just moving to where consumers are headed.
And if that means they need to dig more into brand/advertisers coffers to lure viewers to new video platforms with smooth-operating programmatic
media-buying platforms -- for linear TV or streaming -- so be it.
This comes as companies like Netflix appear to be poised to raise monthly prices again -- something Disney+, Peacock and
Paramount+ have done recently.
Legacy media companies -- more than Netflix and Prime Video -- are under much more financial pressure to build monetization.
That means consumers'
monthly fees are still a major part of the business model.
On the flip side, it means consumers will continue to take advantage of easier ways to add and subtract all kinds of video services --
every month if they need to.