Survey: Growing anxiety over UK streaming costs
November 13, 2024
Almost two-thirds of UK consumers are concerned about the rising cost of monthly streaming subscriptions, according to the latest EY Decoding the digital home study, which surveyed 2,500 UK consumers on their attitudes towards technology, media and telecoms experiences in the home.
The study indicates that consumer anxiety about rising monthly subscription costs increased from 57 per cent in 2023 to 62 per cent in 2024 .Despite this, nearly half (48 per cent) of consumers express a willingness to pay a premium for the convenience of content aggregation on a single platform – a rise from 36 per cent last year.
Consumers cancelling platform subscriptions has also become a feature of the streaming market in recent years. This year, 31 per cent of household respondents, on average, have cancelled in the last 12 months or plan to cancel at least one streaming subscription service, in line with last year. Decisions to cancel are primarily driven by the need to cut costs (50 per cent) and watching the service less than before (15 per cent). It is worth noting though that a third are resubscribing to one or more services they previously cancelled – a finding that underlines the importance of streaming platforms’ ‘win-back’ strategies.
The search for value amid rising prices
As households grapple with financial mindfulness, 34 per cent are considering more economical broadband options, and 47 per cent are open to ad-supported streaming services for lower subscription rates.
While performance continues to be a key driver in broadband purchasing decisions, the reliability of networks, particularly in urban areas, is a significant concern for consumers, with almost one-quarter (23 per cent) of household respondents still experiencing unreliable home internet, despite ongoing network upgrades. Households are seeking more credible service promises, higher perceived value, and greater convenience, emphasising the importance of trusted brands in the digital home sector.
While the appeal for aggregating connectivity, content and home technology is growing, consumers are also prepared to take more radical steps in search of higher value. 5G mobile is increasingly becoming a substitute for traditional home broadband, with one-third (33 per cent; up from 29 per cent in 2023) of households prepared to make the switch, provided their mobile connection can offer the same level of performance.
Rob Atkinson, EY UK & Ireland Managing Partner for Technology, Media and Telecoms, commented: “In a landscape where people are closely monitoring their finances, our latest findings reveal a complex picture of consumer behaviour in the UK. Despite a tangible anxiety over the escalating costs of digital services, there is a pivot towards premium offerings. The year-on-year increase in the pursuit of premium streaming offerings, especially among those in their mid-thirties to mid-forties, highlights a sophisticated consumer base that values not just price, but the richness and convenience of their digital lifestyle. Simultaneously, the broadband market is witnessing a demographic shift, with younger users leading provider switches. Providers must simplify the switching process and communicate value effectively; particularly as older demographics prioritise network quality and pricing transparency. This nuanced consumer behavior underscores the need for tailored engagement and service assurance to maintain and grow customer bases in a cost-conscious era.”
Digital Well-being
Concerns over the effects of digital usage on people’s mental health are on rise, with the concept of a ‘digital detox’ gaining traction over recent years. Some 38 per cent of all respondents often consider the negative impact of being online on their own well-being and 41 per cent of UK households are concerned about the levels of screentime in their home These worries are more pronounced among younger users, with 47 per cent of 18-34 year olds saying that being online is more of a hindrance.
Atkinson added: “It’s becoming increasingly clear that our online habits have a profound impact on our mental health and overall well-being. This year’s survey reveals a concerning trend, with more than a third of respondents acknowledging the adverse effects of digital consumption on their personal well-being. As the conversation around digital well-being gains momentum and smartphone bans for children become a focal point of public discourse, it’s imperative for service providers to reflect on these insights and establish a stance that resonates with and supports the needs of today’s families.”