31 May Perspective | MusicWatch: Anxious Consumers Unlikely to Cut Leading Entertainment Subscriptions
May 31, 2023 | MusicWatch, Inc., a specialist in market research and industry analysis for the music and entertainment industry, recently set out to gauge the effect of the turbulent economy over the past year on U.S. consumers’ entertainment subscriptions. Would consumer belt-tightening bleed over to entertainment subscriptions, the company wondered, or would the perceived value of music streaming (MusicWatch’s area of primary expertise) make paid subscriptions essentially recession proof?
The study, which included 1,000 consumers ages 17 to 70, found that consumers did not anticipate increasing their entertainment budgets, and a majority planned to spend less. However, very few expect to cut the leading audio and video subscriptions.
The company found a good deal of anxiety around the economy in general, as well as personal finances. For those Americans who are more pessimistic about the economy, inflation is the top concern, driven by the cost of food and gasoline. Cost of entertainment subscriptions barely made the list.
Respondents paid for, on average, seven subscriptions, across, music, video, gaming, magazines, podcasts, fitness and other things.
Apple Music and Spotify Premium far outperform the top SVOD services in terms of stickiness. Among video services, Netflix, Hulu and Disney+ were deemed the most essential, with “Can’t live without it” ratings similar to second-tier music services Amazon Music Unlimited, Pandora Paid and YouTube Music.
Among respondents who mentioned that they expect to spend less on video subscriptions to watch
movies and TV shows, content was low on the list of reasons to churn out. People were more likely to leave because of conflicting financial priorities or lack of perceived value.