Consumers Demonstrate Strong Interest in Subscription Services
Right now, small- to medium-sized cable operators are looking for new ways of adding value to their video and broadband offerings to enable better retention of customers and to drive profits. New research indicates that one way to do this is to offer value-added subscription services.
The study, “Consumer Demand for Value-added Subscription Services,” indicates that 90 percent of consumers are now interested in upgrading their basic subscription packages.
What are these consumers after? They’re looking for discounts, exclusive offerings, privileges and access to events with other subscribers.
Interestingly, 84 percent of those surveyed indicate that they would pay $1.99 extra per month for a subscription service that provides direct access to premium content or exclusive benefits. Some 76 percent would pay as much as $3.99 for the same services.
Here are some additional findings from the survey:
- For consumers with multiple subscriptions, 40 percent say that over-the-top video and on-demand video services are what they value most—versus 32 percent who report that shopping is most important, and 9 percent who name audio as such.
- Forty-five percent of consumers claim that over-the-top services like Netflix, HBO Now and Hulu are most important to them.
- As many as 39 percent of consumers cancel subscriptions because they don’t see the value in them. Some 36 percent cancel because they don’t want the financial obligation. And 34 percent cancel because the service is no longer relevant. The remaining 13 percent claim that billing difficulties are often to blame.
Are you using additional subscription services to drive profits for your company? Tell us about your experience!