Consumers have begun to declutter their video libraries in a bid to simplify their entertainment experiences.
TiVo’s 2024 Video Trends Report found that consumers in the United States and Canada have reduced their entertainment spending by nearly $20 year-over-year, with the average number of services used declining from 11.1 to 9.9 in the same period.
This is the first time since before 2021 that the average monthly entertainment spend dropped below $160 – it had peaked in 2022 with an average monthly spend of $189.38. Among those who cancelled a subscription video on demand service (SVOD) within the last 6 months, 17.0% said they did so because they “weren’t using it enough” and 16.9% said it was because the service raised its prices.
At the same time the number of hours spent watching video has plateaued. Consumers are spending the same amount of time consuming content but on fewer services across linear and streaming.
“We are seeing a shift in consumer priorities as they look for ways to reduce the number of services they use without sacrificing access to quality content,” said Xperi’s chief product and services officer, Geir Skaaden. “As consumers face economic uncertainty there will be increased pressure on the entertainment industry to deliver quality content and keep users engaged for long periods of time.
“There is a chance we will see a similar spend and entertainment consumption trend from that which we experienced during the pandemic, with consumers searching for cost saving measures and spending more time at home, increasing the value in which consumers place on entertainment. This new balancing act is and will continue to put more pressure on the entertainment ecosystem to deliver value with relevant and timely content.”
The report also notes that while consumers are reducing their streaming services, the erosion of the pay-TV market is reducing with the number of users planning to cut the cord declined 2% year-over-year
Fragmentation is also an issue; 58% of respondents reported being unable to watch specific sporting events due to lack of access through their subscribed services, leading to frustration when games weren’t available.
