Consumers are feeling the pinch from ongoing price hikes across subscription-based streaming services and other media platforms, and those cost increases are making viewers more-attracted to lower-priced plans that are subsidized by advertising, according to new data released by Hub Entertainment Research this week
In a new report on Wednesday, Hub said most viewers in the “Generation Z” admit price increases among streaming services have made them more receptive to lower-priced, ad-supported plans. That demographic (72 percent) was more likely to sit through ads compared with “Generation X” and “Baby Boomers” (62 percent), according to Hub’s survey data.
Nearly two-thirds of of Gen Z viewers said they would almost always choose an ad-supported option if it reduced their monthly subscription cost by $4 to $5. That compares with about three-quarters of Gen X and Baby Boomers.
Younger viewers also showed a greater willingness to accept heavier advertising in exchange for lower prices: One-third of Gen Z respondents said they would accept twice as many advertisements for a plan costing $8 or $9 per month, compared with 21 percent of Gen X and Baby Boomers.
As streaming prices increase, so too does ad tolerance: Nearly two-thirds of Gen Z, Gen X and Baby Boomers said they don’t mind watching TV ads today as much as they did in the past, with younger viewers also saying that TV ads have become more-relevant to them.
The full report form Hub Entertainment Research is available to view with a paid subscription by clicking or tapping here.
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