Most US Consumers Unwilling to Pay More Than USD 20 a Month for Streaming TV Services

The majority of Americans (59 percent) are not willing to pay more than USD 20 a month for streaming TV services, according to a recent survey of more than 2,600 US consumers by The Trade Desk, the company said.

Furthermore, 75 percent of consumers will not pay more than USD 30 a month. As more TV content providers launch new streaming services in 2020, these results highlight the subscription fatigue threshold for TV streaming services, where on-demand movies, TV shows and live events can be accessed by connected devices such as smart TVs and mobile devices.

Other key findings of the survey include:

More than half of US households (53 percent) subscribe to Netflix, followed by Amazon Prime (43 percent) and Hulu (29 percent).
The cause of frustration with TV advertising among streaming subscribers is having to watch the same commercial repeatedly (cited by 46 percent of respondents).
More than half (53 percent) of US consumers would be open to watching ads (every other episode of their favorite show) if it meant lowering the cost of subscription streaming services.
More than two-thirds (68 percent) of US consumers (with no preference to tailored TV ads) would be willing to watch ads relevant to their interests if it meant watching fewer ads overall.
More than half (51 percent) of respondents who watch new episodes of their streaming TV show on an app, after it premieres, watch on a smart TV.
As more US consumers watch TV content via streaming services online, content providers are under pressure to produce new premium content that drives membership and viewership. This research suggests, however, that there are hard limits to consumer appetite for subscription-based services. As a result, streaming companies must decide whether and how to incorporate advertising-supported tiers to their platform.

The survey indicates a willingness from consumers for streaming services supported by ads, particularly if the format and pacing of commercial breaks differ from traditional TV content. More than half (53 percent) of respondents are willing to watch ads every other episode to lower their monthly costs on a device that doesn´t show any ads.

Forty percent of consumers would prefer ads tailored to their interests and preferences, but, among those who said they wouldn´t, that number increases to more than two-thirds (68 percent) if it meant they would see fewer ads.

The Trade Desk™ is a technology company that empowers buyers of advertising. Through its self-service, cloud-based platform, ad buyers can create, manage, and optimize digital advertising campaigns across ad formats and devices. Integrations with major data, inventory, and publisher partners ensure maximum reach and decisioning capabilities, and enterprise APIs enable custom development on top of the platform. Headquartered in Ventura, CA, The Trade Desk has offices across North America, Europe, and Asia Pacific.