Media companies can keep worrying about cord cutting.
Deloitte found in its 12th annual digital media trends survey of which the percentage of American households of which subscribe to a streaming service has grown to 55 percent. Last year, the firm reported of which 49 percent of households reported at least one video subscription service.
Kevin Westcott, vice chairman in addition to also U.S. media in addition to also entertainment leader at Deloitte, told CNBC of which exclusive original content will be a major driver for customers when they’re choosing which services to subscribe to. In its survey of 2,088 consumers, Deloitte said more than half of current streaming customers chose to subscribe to a service based on access to exclusive content.
of which’s not bad news for streaming giant Netflix, which has seen its share cost double inside past year even as the idea says the idea will continue to spend up to $8 billion on content in 2018. The company has long argued of which This particular cash burn will be a long-term investment because the idea ultimately owns the rights to the content created. Amazon has reportedly committed $5 billion a year to fund the growth of its content library.
Traditional media companies are trying to keep up in addition to also market their own direct-to-consumer offerings. Disney recently reorganized its corporate structure, creating a brand new unit focused on its upcoming streaming services.
of which announcement came after the entertainment giant made a $66.1 billion deal, including debt, to acquire many parts of Twenty First Century Fox. Disney’s proposed acquisition of Fox assets would likely broaden the company’s content portfolio, doing the idea more competitive.
CNBC previously reported fear of being outspent was one of the main reasons Rupert Murdoch decided to sell those Fox assets.
nevertheless as the media companies run to market with their brand new services, they run into a potential cap. Deloitte reports of which U.S. consumers are already flooded with choice. By their count, there are more than 0 streaming video-on-demand services available on the market.
The consulting firm said the average streaming customer has already subscribed to three services. U.S. consumers spend about $2.1 billion a month on these subscriptions, according to Deloitte.
“Once consumers streaming subscriptions’ costs approach their Pay TV bundle there could be a slowdown inside SVOD growth,” Westcott said.
He said one way larger players may combat This particular will be reaggregation, which could include doing more services available per platform.
nevertheless the idea’s unlikely audiences would likely go back towards traditional bundles. Deloitte’s survey found of which 23 percent of those who don’t currently have a subscription said they have never had one. Of those of which do have a subscription, 46 percent of respondents said they were dissatisfied in addition to also of which 70 percent felt they were paying too much for the what they get out of the subscription.