SVODs have some work to do to shore up loyalty from younger viewers that increasingly appear indifferent to distinct platforms and are more likely than the average population to actively cycle in and out of multiple subscription streaming services.
According to new analysis from Ampere Analysis, compared to the general population, younger viewers (aged 18-34 years) are more likely to actively sign up for multiple paid services, only to cancel those that don’t offer enough in the perceived value equation and resubscribe depending on whether content they want is available.
Per Ampere, this is a deliberate behavior, where over half (58%) of younger consumers reported subscription cycling compared to a global average of 40%.
Cost is part of the picture for consumers aged 18-34 – where 36% of those at risk of churning cited price as a factor in their consideration of cancelling a service within the next 12 months.
But it’s not all about cost for younger consumers, as data shows they subscribe to more streaming services than their average peer (4.2 versus 3.3) and are more likely to rent (+29%) or buy (+15%) films and TV shows. But while younger viewers appear more willing to pay for content and services, they’re staying less, as they subscription cycling stat showed – meaning SVODs have the challenge of proving their distinct value in a crowded market.
While affordability plays into subscription decisions, younger viewers want more from paid streaming platforms than just a low price - including a variety of content that can be accessed on different devices. Per Ampere, among younger viewers, 41% find value from an SVOD they can watch across multiple device types, while 40% see value from bingeable series and 39% cite value from streaming platforms that have a wide breadth of content.
“The growing signs of indifference among young consumers towards subscription OTT services signals a need for platforms to rethink their position. While viewers subscribe to more SVoD services than ever, loyalty is increasingly reserved for a select few,” said Isabelle Charnley, consumer analyst at Ampere, in a statement.
Keeping users subscribed to a platform is a top aim for streamers, but they’re also looking to deepen engagement and keep users coming back regularly – something social video has done well but where streamers comparatively have a large gap.
According to the report, 85% of 18-34-year-olds use a social video service daily, while just over half (52%) return to a subscription streaming platform each day.
“Many [younger viewers] turn to social media for quick, frictionless content to avoid decision fatigue. To stay relevant, streamers must either position themselves as lean, cost-effective complements to premium services, with a clear and defined role in the content stack or elevate their core value proposition to justify a higher price point,” Charnley continued. “Players must deliver deeper, more consistent value through engaging content, flexible access, and a compelling user experience that keeps audiences coming back.”
The new data from Ampere, based on a consumer survey of 56,000 internet users across 30 markets including more than 21,000 18-34-year-olds, supports the notion that streamers need to find ways beyond just price to differentiate in the market.
Prior research from Hub Entertainment found that as major streamers adjusted strategies to try and appeal to a broader bases with something-for-everyone content approaches, what distinguishes one streamer from another and the related cost-benefit analysis has become harder to figure out for consumers. This factor has made ensuring a clear, differentiated value prop of a specific platform more important, and potentially more difficult, to communicate to consumers in a market with many streaming entertainment options.