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Streaming Fatigue? Price Hikes and Content Woes Test Viewer Loyalty
- Streaming platforms are raising subscription fees while consumer satisfaction with the quality of content being offered is declining, leading to concerns over the golden age of high-quality programming coming to an end. Recent surveys suggest that satisfaction with both ad-free and ad-supported services has dropped. However, experts suggest that surveys don't fully capture multiple factors, such as consumer expectations, market competition, and industry pressures affecting the streaming market. Cost, particularly for licensing and producing content, is the primary factor in consumers cancelling services. Increased competition and costly licensing deals, such as for exclusive streaming rights for sports by platforms, is behind the price increase trend.
- Experts also highlight that consumer behaviour, including subscription and cancellation rates, can differ from survey metrics. They note that a change in satisfaction levels, as seen in surveys, may not be as significant as it seems, since services just moved by a percentage point or two and any increase or decrease in satisfaction by consumers is within the margin of error of the survey. Content quality is not the only factor in customer satisfaction as price hikes, cost pressures, and changing customer expectations also impact their satisfaction levels. Subscription fatigue and churn rates for some of the streaming services have increased, with experts suggesting that platforms may need to adapt to consumer demands by improving content offerings and addressing subscription fatigue.
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