Study: Price hikes don’t dampen UK streaming
March 24, 2021
Above-inflation price rises of up to 33 per cent are failing to curb Brits’ enthusiasm for film and TV streaming services, according to research by Priestley, the insight-led digital marketing consultancy.
The study shows that young Brits are increasingly bouncing between services, using free trials and one-month subscriptions to binge-watch the latest films and TV, without blowing the budget.
Nearly two-thirds (65 per cent) of Brits under 40 signed up to a new streaming service in the last 24 months, with high profile launches including Disney+, Apple TV+ and Discovery+, while a growing number use streaming services catering to niche interests as diverse as anime, opera, and LGBTQ+ cinema. As more on-demand outlets become available, Brits are bouncing between services with most under-40s (73 per cent) regularly using 2-3 different services and over half (56 per cent) re-subscribing to services after cancelling.
The majority of subscribers (49 per cent) are comfortable spending a total of £11-£20 per month on film and TV streaming services, while just five per cent are willing to spend more than £30 per month. As prices rise, almost three in four (74 per cent) under-40s have cut back on streaming services to save money, while one in two (51 per cent) have used a free trial to binge-watch the latest films and TV, before ending the subscription.
“Inflation-busting price rises are failing to dampen Brits’ enthusiasm for streaming films and TV,” said Matt Bell-Watson, Founder of Priestley. “Consumers are increasingly bouncing between services, using free trials and one-month subscriptions to binge-watch films and TV, without blowing the budget. Yet, despite watching the pennies, many Brits are willing to splurge on additional perks and VIP benefits. The challenge for streaming services is understanding what audiences value most and are willing to pay for, while competing for consumer attention in an increasingly crowded and competitive market.”
The research reveals 28 per cent of under-40s would pay extra to watch new and original films and TV that aren’t available elsewhere. A similar number would pay to watch offline (27 per cent) or in 4K (27 per cent), while 23 per cent would pay to watch new releases before anyone else. But what matters to audiences with niche interests can vary significantly from the general public.