Google search data reveals a huge spike in online searches in the US for the terms streaming services, HBO Max monthly cost, Disney+ monthly cost, and Netflix monthly cost in the last 7 days.
With more streaming services increasing their pricing or introducing ad-supported tiers, users are exploring ways to cut subscription costs. A Parks Associate report found that 36% of U.S. subscribers already “service hop.”
Professor Cody T. Havard from the University of Memphis commented on the situation:
It has been well documented and discussed by experts in the entertainment industry that people will have a few services they will choose to pay for on a monthly or annual basis — with some other services being thrown in on perhaps an intermittent basis, depending on what show is available on a service at any given time. (People subscribe for a month and cancel once they finish watching the show(s) they are interested in.)
The challenge for other streaming brands is to engage with consumers in a way that leads to strong loyalty and annual or recurring subscriptions.
I do not see streaming services lowering subscription costs because that typically is seen as a negative thing in consumer behavior. People pay more for brands they think are better, therefore price influences the prestige consumers have of a brand or product. We see this frequently in automobile brands, in which versions of cars are very similar except for a few additions and most importantly the logo on the vehicle.
You can read his complete analysis of the future of streaming and the opinions of several other university professors in this recent article on how to save money on streaming services.
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