CONSUMERS SAY: “MAKE STREAMING MORE LIKE CABLE!”
A recent Hub Entertainment study revealed that almost 60% of household entertainment decision-makers would pay for a “one-stop shop” app to manage and pay for their subscriptions, even if it came at an additional cost. Everything old is new again, as this sounds a lot like a-la-carte cable. (Marketing Charts: Jan 4, 2024)
STREAMERS WORK TO STEM CANCELATIONS
While struggling to manage multiple subscriptions, consumers are also chafing at the increasing costs of streaming services. Citing price hikes, customers defected at a rate of 6.3% last November, a new record. To keep subscribers, platforms are promoting their less expensive ad-supported tiers, bundling with rival services, and offering deep discounts. Of note: 25% of those who cancel return within four months, and 50% within two years. Viewers will return for high-quality programming and affordable prices, and streaming services are beginning to understand that customer relationships don’t end at cancelation. (Wall Street Journal: Jan 2, 2024)
NETFLIX’S AD-SUPPORTED TIER HITS A NEW HIGH
Netflix is one streaming service that has retained subscribers by heavily promoting its less expensive ad-supported option. A little more than a year after its launch (in Nov 2022), Netflix has reported that its ad tier has hit a total of 23 million global subscribers per month. This is a significant jump from when they reported 15 million subscribers two months ago. Netflix has been nudging users to its ad-supported offering by increasing the cost of its ad-free option and cracking down on password-sharing. (Reuters: Jan 10, 2024)
NEW CTV STREAMING METRICS
While not as flashy as AI-powered cat doors or personal robot companions, iSpot.tv’s newly revealed CTV streaming metrics at CES 2024 could be a pivotal moment for media measurement. If the industry agrees upon a common data currency, it will bring much-needed consistency to this fragmented space. Advertisers and agencies could easily track where their commercials streamed, determine reach, compare platforms uniformly, and identify competitors’ spending. The new metrics are currently undergoing beta testing with several iSpot clients. (NextTV: Jan 9, 2024)
THIS WEEK IN VIDEO HISTORY
January 10, 1999 – The Sopranos premieres on HBO, ushering in the new golden age of “Prestige TV.” Series creator David Chase was rejected by all of the broadcast networks before finding a taker in HBO. Which is just as well because who the [bleep] would watch if they couldn’t say [bleep], [bleep], and even [bleep]?
