One dollar may not sound like a lot, but Netflix’s recent $1 monthly price increase could have a dramatic effect on the streaming TV world. With more and more online video services available, from Disney+ to HBO Max, a price hike could cause consumers with multiple subscriptions to reevaluate their entertainment options.
The Netflix move was announced Oct. 29, in the middle of a pandemic that has drastically increased the consumption of online TV. A recent survey by Corus of American viewers found 78% of respondents were watching more streaming video since the Covid-19 outbreak began. Families who sign up for all these services are spending close to what they use to shell out each month for cable. Using data from JustWatch, we’ve developed a way to see what your ideal package will cost based on the shows you want to see.
The Corus survey of about 1,000 U.S. consumers on behalf of Bloomberg, taken before Netflix’s price increase, asked respondents to build a dream bundle of streaming services under $50 per month. Overwhelmingly, they chose Netflix, Hulu, Amazon Prime and Disney+.
Of course, some people subscribe to streaming services for reasons beyond television series, such as movies or comedy specials. Many people are already subscribed to Amazon Prime because they use it for free shipping, not just for video. Even though Amazon Prime was the second most selected for the dream bundle overall, those who already subscribed to it tended to consider it expendable when they were asked to narrow their budget—a sign they may not place as much value on Prime’s programming. Below are the services that users chose to add or drop when limited to $50 a month for their dream bundles.
Netflix is close to a must-have for people under 40, and Disney+ and Hulu also fare well with younger viewers. HBO, which is now part of the HBO Max service launching in May, has a lot of ground to make up across generations, while CBS All Access and Showtime find their biggest loyalty with older viewers.
While Netflix, Hulu, and Disney+ gobble up a large share of the market, viewers’ second or third picks will likely go toward more niche services. Premium platforms like HBO have a broad appeal across many demographics, while a service like Crunchyroll may grab market share by appealing to younger and international viewers.
Disney+ has racked up 54.5 million subscribers worldwide since it launched in November, showing it’s possible to gain a big following in short order. We’ll use your survey data to revisit these trends in the future to see if newer services like Peacock and HBO Max catch on or if Netflix and Amazon Prime start to lose ground in the streaming wars.
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