Australians wary of SVOD costs | WARC | The Feed
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Australians wary of SVOD costs
Australians are spending 13% more on digital entertainment services this year and two-thirds (64%) are concerned about the cost of multiple subscriptions.
That’s according to Deloitte’s Media Consumer Survey 2022, which highlights the growing pressures on consumers when it comes to managing the costs of media consumption.
Why it matters
Media organisations investing in content and marketing to grow their subscriber bases are aware of the financial challenges consumers face and are introducing advertising-supported tiers to reduce churn.
But these are not the only options available: Deloitte suggests that pay-per-view could become a more significant option, while content-driven commerce offers media companies revenue opportunities beyond subscription and ads.
Key findings
- The average household is spending A$62 per month on digital entertainment services, up from A$55 in 2021.
- The average consumer now spends 31% above their target budget, a figure that rises to 43% for Gen Z, whose households represent the largest monthly spenders of any generation at A$82.
- Nearly half (46%) of SVOD users now periodically review subscriptions to decide whether to keep, add to or cancel existing services.
- Just 9% of respondents placed digital media subscriptions at the top of their list when asked which categories to chop if cost cutting, way behind eating out (30%), alcohol and tobacco (27%).
- Ad load is a factor in pricing ad-supported tiers: 44% of Australians would be interested in watching six minutes of ads per hour for a discounted A$5 monthly subscription.
The generational divide
Gen Z and Millennials would more readily cut spending on electronics than on their digital entertainment bundles; the reverse is true for older generations who would cut entertainment subscription costs before reducing their phone, laptop and TV budgets.
Sourced from Deloitte
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