93 Percent of Media Subscribers Are at Risk of Cancellation Every Month
The findings are based on a survey of over 27,000 Americans, providing insights into how 93 percent of current media subscribers are at risk of moving, swapping or canceling their platform subscriptions with every billing cycle.
NEW YORK, Jan. 31, 2023 (GLOBE NEWSWIRE) -- PCH Consumer Insights – the new research platform designed for agencies, researchers, brands, and marketers, fueled by registered users who visit PCH’s websites, and media expert Evan Shapiro, today unveil the results of their Media’s Year of Living Dangerously report. The findings are based on a survey of over 27,000 Americans, providing insights into how 93 percent of current media subscribers are at risk of moving, swapping or canceling their platform subscriptions with every billing cycle.
With major media platforms across all sectors repacking offers, reducing pricing, and remodeling to maximize profit, the report looked at what matters most to media: What consumers will do with their media subscriptions in 2023 and how those same consumers will make content choices. One major finding stood out, noting that only seven percent of consumers who answered the survey intend to stay subscribed to their current media services on a month-to-month basis.
"Our research shows that subscription-based media platforms face a new era of uncertainty as consumers reassess their entertainment options each month,” said Smriti Sharma, Head of Consumer Insights at Publishers Clearing House. "We are now living in an age of ‘nomading,’ where consumers are more willing to switch between subscriptions, pay more to get fewer ads, or pay less for more ads. Regardless of income or age, consumers are actively searching for ways to get the most out of their entertainment subscriptions.”
Additional significant findings include the following:
- Cutting Back to The Basics: Out of the over 27,000 survey responses, 30 percent of all consumers across all media say they intend to cut back to the bare necessities in the coming year. Even homes with household incomes of $150-249K are among those with the greatest likelihood of subscribing less and switching platforms.
- 1 in 10 Loyal Subscribers Still Making the Switch: Even among the most committed subscribers, only one in ten say they intend to stay with their current entertainment subscriptions this year. These consumers are still reassessing monthly, switching as needed, and cutting back to the necessities, even with a track record of platform loyalty. This leaves just seven percent of media subscribers in the safe zone for platform consumption.
- A Complicated Landscape with Free Services and Ad-Supported Tiers: Media consumers most willing to pay a premium to avoid ads are also the most likely to cancel and swap subscriptions monthly. More than a third say they will downgrade their subscriptions to pay less and get more ads. In contrast, 1 in 4 consumers now plan to spend more to see fewer ads in 2023. The arrival of cheaper, ad-supported tiers on premium platforms, combined with the recent rise of free services, seems to have complicated and accelerated the “nomading” of media subscriptions. Yet 41 percent indicate they will vary their payment preferences depending on the content they want to watch.
- Consumer “Attitudes” are fluid: With regards to advertising personalization, the complications continue. 35% of consumers say they dislike the use of their data to personalize ads, while 11% see ad personalization as a benefit to their experience. Yet 54% express no preference at all, demonstrating both a challenge and opportunity for those in the digital ad business.
Conclusion:
America’s media subscription consumers do not see content choices as binary or simple. The data clearly shows today’s streaming subscribers are constantly, actively seeking better options. Regardless of which kind of content is streamed, which demographics services strive to serve, or which motivations move subscribers to sign-up, swap, or cancel, 93 percent of all media subscribers are now at risk with every billing cycle. In 2023, streamers and content platforms must get comfortable with complexity and meet the modern media consumer’s demand for “Yes, And.”
Learn about PCH Consumer Insights and download the full survey report here
Survey Methodology
PCH Consumer Insights surveyed 42,072 American adults 18+, recruited from Publishers Clearing House’s 22 million registered Audience Members, in Q4 2022. The total responses were then weighted to adjust for age and income to align with US Census data for the American population, resulting in the 27K respondents represented in the data above.
About Publishers Clearing House
Publishers Clearing House is one of Media’s most iconic brands, and a top-ranked multi-category media property with a 100% logged-in audience of millions of registered users, each authenticated at an individual level. With uniquely engaging and interactive free-to-play chance-to-win content, PCH’s signature experience delivers consumers who choose to provide accurate first-party data and information as they register and engage with the company. As a result, PCH has one of the largest authenticated audiences outside of the walled gardens, a foundation from which it can offer a variety of ways for publishers and advertisers to activate their identity and 1st party data for cookie-less targeting, buying, and measurement. PCH’s headquarters is in Jericho, NY, with additional offices in Portland (ME) and New York City. Learn more at https://insights.pch.com.
Media Contact
Michael Tilus
Broadsheet Communications for Publishers Clearing House
[email protected]
