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Survey: Consumers Willing to Pay More for Value-Added Video Subscriptions

8 Mar, 2016 By: Erik Gruenwedel

A new market suggests consumers are willing to pay upwards of $4 more a month for value-added content on subscription streaming services.

The apparent self-serving findings from Vindicia, a Redwood City, Calif.-based subscription billing company, underscore efforts by “skinny bundle” services such as Dish Network’s Sling TV and Charter’s Spectrum TV Plus to charge extra for specific content genres, including live sports.

Culled from a survey of 1,000 U.S. adults (conducted Jan. 25-29) who pay for at least one over-the-top video service, the data suggests 76% of respondents are willing to pay $3.99 extra monthly for access to premium content. That percentage increases to 84% if the surcharge is 50% less at $1.99.

“Our survey found that despite the notion that consumers don’t want to add significant financial obligations to their lives, they are very willing to pay for the services they value,” Vindicia CEO Gene Hoffman said in a statement.

Among respondents, 45% tabbed HBO Now, Netflix and Hulu Plus as their favorite online video platforms. Another 30% selected Amazon Prime (which includes Prime Video) and Google Express as preferred e-commerce destinations, while 8% picked audio services Apple Music, Pandora, Spotify and Audible.

Respondents said convenience, followed by value, cost savings, selection and personalization underscored primary reasons for subscribing to digital services. About 30% said they use select subscription services at least 20 hours per week; 28% use them 11 to 20 hours, and 42% use them from one to 10 hours per week.

Indeed, among younger adults (18-29), 52% accessed a SVOD service, with 35% using the service on average 19 hours weekly. Interestingly, special pricing offers on premium content factored more importantly (29%) among older respondents (above 44 years of age) than younger adults (17%).

About the Author: Erik Gruenwedel

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