Polling approximately 1,000 U.S. adults who have subscribed to at least one paid service Widmeyer discovered that video subscription services were the most popular services followed by shopping services and music services. Also ranking were print media services, lifestyle, professional services (Dropbox for example), financial (credit scores) services, learning and dating services.
Of these services roughly 70 percent subscribe to more than one, and when asked what was their “most important” service, 40 percent of these 700 adults who replied using multiple services stated over-the-top/video-on-demand as their favorite.
Topping users’ priorities with these services, the study found that convenience and value were respondents’ top concerns. More than a third (41 percent) also responded to the survey’s question regarding personalization of the services as the least important factor when subscribing to a service.
Given the increasing popularity of these services it comes as no surprise that usage was a point of emphasis by those who took part in the study. Nearly a third (30 percent) state they are using these services for at least 20 hours per week, and another 13 percent said they are using these services for 16 to 20 hours per week. Also not surprisingly, younger consumers were more apt to use these services more frequently than older users with 18- to 44-year-olds averaging 20 hours per week, while those older than 45 averaging 13 hours per week. Of these services the most frequently used service was audio with users saying they used these services 25 hours per week. Video services followed audio with 23 hours per week of usage.
Younger subscribers, including those ranging from 18- to 29-years-old were also more likely to subscribe to these services. Millennials are the most frequent users of video services with 52 percent using over-the-top/video-on-demand, and 35 percent saying they average more than 19 hours per week of engagement.
Users older than 44-years-old also stated they require special pricing offers that equate into better value to persuade their engagement with these services. Conversely, only 17 percent of younger consumers mentioned special pricing plans as subscription service incentives.
Perhaps a related component of the usage figures is the perception of value, which is a top priority for those polled. Thirty nine percent of users that reported they had canceled their subscriptions to a service said they no longer saw the value in subscribing, while another 36 percent said they no longer wanted the financial commitment of paying for these services.
Underscoring the demand for subscription services, Widmeyer also found that almost 90 percent were either very interested in (52 percent) or somewhat interested (37 percent) in augmenting their subscriptions with these services. For these upgrades Widmeyer reports users are willing to pay up to $3.99 for these upgrade opportunities.
Comparing these numbers to a smaller group of 333 non-subscription service users, Widmeyer adds that 45 percent did not want the financial obligation of subscribing, and another 42 percent of this group said these services did not provide enough value.
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