Subscription Video Remains Resilient Amid Near Double-Digit Inflation -- TiVo Q4 Video Trends Report
Nearly 20% of respondents say they're evaluating subscription costs monthly, and prices are up. But so is the average number of services U.S. consumers pay for
Inflation in the U.S. dipped below double digits in the fourth quarter, but just barely, at 9.1%.
Consumers are increasingly reviewing their subscription video purchases on a monthly basis: 17.6% reported doing that in the fourth quarter of 2022 vs. 11.4% in Q4 2021.
Prices are up. Consumers paid an average of $49.08 for SVOD services in Q4 vs. $42.03 a year earlier. And average spending on vMVPDs rose from $55.65 to $64.75 year over year.
Still, perhaps because they're aware that out-of-home entertainment spending can get out of hand much quicker than watching movies and TV shows at home, consumers are paying for more video services than ever. The average number of paid video services rose 16% in the fourth quarter, to 7.6.
All of this data comes from TiVo's "Q4 Video Trends Report," which reveals subscription home video to be one of the more resilient, price-elastic sectors of the U.S. economy.
Not surprisingly, consumers are adding free, ad-supported services to their watching time in even bigger chunks, with 64% of U.S. TV watchers now including ad-supported video-on-demand services in their viewership diets.
Also notable: TiVo says that 73% of U.S. consumers now own a smart TV, with one-third having purchased one in the last six months.
This suggests that the U.S. market is not only becoming saturated with smart TVs, but with streaming adoption, as well.
To conduct its survey, TiVo interviewed 4,493 adults age 18 and older in the U.S. and Canada during the fourth quarter.
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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!