While more people are cutting the cord, around 63 percent of streaming service subscribers said they still have a cable subscription as well, according to a new study from IBB Consulting.
Among current streamers, 61 percent said they would be willing to pay up to $2 per month more for their subscriptions if prices increased.
The study, which surveyed over 1,000 OTT subscribers in the U.S., showed that 49 percent use just one service, while 33 percent use two services and 18 percent use three or more. Also, millennials are more likely to subscribe to at least three streaming services than other demographics.
But as more people make that move, many streaming services have started providing bonus premium packages for an additional cost. Hulu subscribers, for instance, can add a Showtime subscription. According to the survey, users who are looking to get a premium, niche or sports-centric add-on are willing to pay $5 to $15 for it.
“There is continued increasing demand for SVOD, and having the right tools and data to find and engage customers when they’re ready to buy is critical in this competitive market,” said Jonathan Weitz, report author and partner for IBB Consulting.
The study also showed that about a third of respondents prefer browsing or surfing within an app to discover new programs, while 24 percent prefer social media for that purpose. Millennials are more likely to use social media and recommendations from friends for content discovery, with 48 percent in that age range preferring those methods.
“Almost half of consumers’ preferred discovery options require that OTT providers offer features that support a better experience,” said Weitz. “This means that in addition to improving how paid OTT providers market to new users, they must also take steps to ensure that offerings are easy to use. With constantly expanding libraries, strong human curation and effective recommendation engines driven by machine learning in particular are key to the overall SVOD customer experience.”