Some clues point in the direction of a certain weariness of consumers in the face of the abundant supply.
It is an indisputable fact, the pandemic of sars coronavirus has strengthened the sector of the VOD a little bit everywhere in the world. We have repeatedly reported this major development that is of concern to more and more cinemas. With 15.8 million subscribers, an additional in the first quarter, Netflix explodes, for example, all the records.
So far, this reinforcement of the streaming in the short term does not mean that this growth will continue at the same rate over time. A recent survey conducted by Deloitte with american consumers, and relayed by Variety, also leans in this direction.
Smaller budgets may force the consumers to opt-out
The survey was conducted in December and January 2020, and in may last, and therefore allows us to compare the data before and after the confinement. As you might expect, the VOD market has exploded over the past few months and 80 % of the respondents claim to now be a subscriber to at least one platform compared to 73 % previously. The average of the subscriptions even amounts now to four services per household, which confirms this trend.
But when one looks more closely, a few clouds on the horizon. Consumers have a habit that is not really to the taste of the platforms. They take advantage of the free trials available and then cancel their subscription. This period of time gives them time to watch a particular programme, or to judge of the extent of the catalog. Disney More has just put an end to its free trial offer of seven days which existed since its inception. Prior to containment, 20 % of respondents had canceled a subscription, this figure now stands at 17 % but it is still alarming.
The crisis also points the tip of his nose, and 39 % of consumers reported a drop in income of their household. In this context, the fight promises to be very hard, between services, more and more numerous. It’s a safe bet that customers will have to make hard choices and limit their expenditures. Once again, the richness of the catalogues and the quality of the content will therefore be a key issue in order to convince them to stay.
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