Around three-quarters (74%) of global video customers plan to stop paying for pay-TV services within the next five years as they turn to streaming services as a more affordable option, a new report has found.
Grabyo, a cloud-based video production provider, came to this conclusion after polling 13,000 consumers across 11 countries for its Value of Video Report 2020.
Consumers in the UK, US, France, Germany, Italy, Spain, Brazil, Argentina, Japan, Thailand and Australia were asked about their spending habits on TV and video services, how they value subscriptions and future plans to pay for video.
Of those who plan to stop subscribing to pay-TV, or have already cut the cord, 26% said the main reason was the price of the service. And with streaming considered to be more affordable, Grabyo revealed that global penetration of online streaming has reached 55% of consumers, surpassing pay-TV adoption at 50%.
Crucially, the report said that choice of what to watch, flexible subscription options and a low price point meant that consumers are looking to spend smaller amounts on multiple services tailored to their interests.
And it went on to suggest that this ceiling on monthly video spend is a sign that consumers may be willing to subscribe to up to four or five online video services, if the price is right.
For example, the study found that more than a third (35%) of US consumers currently subscribe to two or more online video services and that almost half (47%) would be willing to pay up to $35 a month for them.
There is a similar picture in the UK where 28% of customers pay for two or more over-the-top (OTT) services, with 40% saying they would be willing to pay up to £35 a month.
And in another important finding, Grabyo revealed that older generations are increasingly adopting streaming options. Online video subscriptions have grown 63% among the 65-plus age group since 2019, the report said.
“Broadcasters, rights holders and publishers need to cater for an audience that is moving away from traditional TV,” said Gareth Capon, CEO of Grabyo. “Our latest report shows streaming is no longer just for younger demographics, the viewing preferences of all consumers are beginning to align.”
Sourced from Grabyo; additional content by WARC staff