Plying data to showcase the palpable consumer demand for discounted, partially ad-supported tiers of popular subscription VOD services, 28% of HBO Max subscribers surveyed in April by Hub Research said they take the cheaper $9.99-a-month version of the service.
The response from 1,600 adult U.S. consumers is notable, because HBO Max just launched its discounted tier in June of last year. (It charges $14.99 for the premium ad-free HBO Max experience.)
So in just around 10 months, the option went from zero to being the choice of around 30% of HBO subscribers. Five percent of respondents said they don’t know which iteration of HBO service they have.
The percentage of overall user base taking the cheaper ad-supported option is much higher for services that launched with these options baked in, such as Hulu, Peacock, Paramount Plus and Discovery Plus.
Only 23% of Peacock users say they pay for the $9.99 premium no-ad experience, for example.
The data comes as the two biggest operatives in the SVOD market, Netflix and Disney Plus, are rushing to get to the market with cheaper ad-based service plans.
Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!
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