Consumers Are Out of Patience for TV Price Hikes

New survey data published Monday by Hub Entertainment Research suggests that customers are nearing their budgetary limits on monthly spending for TV subscriptions.

Per Hub’s annual “Monetization of Video” report , based on a recent survey of 1,600 U.S. TV consumers, the average person spends $82 on on TV content — just $5 less than the $87 maximum respondents say they would pay.

But while cost is still a key factor to consider, Hub’s data suggests that many users also have a greater preference for ad-free services, even at higher-price tiers.

Also Read: Netflix Boots Legacy Subscribers Off Its $11.99 Basic Ad-Free Plan

When asked whether they would continue to use an existing service in a year, 85% of respondents said they would “definitely or most likely maintain usage of their ad-free streaming services.”

And just under three-quarters of people surveyed said they were confident they would maintain their allegiance to partly ad-supported subscription services, such as Netflix Basic with Ads.

While FAST channels are attractive to many budget-minded consumers, Hub’s report suggests that viewers still have a lower reported confidence in them, as 26% of consumers who use FAST services said they were likely or definitely going to stop using them.

“Despite the plateau in overall spend, people paying extra for ad-free services consider them more valuable and are more loyal,” wrote Hub in the report. “Cheaper ad-supported and FAST services like Pluto and Tubi have helped to fill the gaps for people tapped out on spending, but loyalties to those services may not be as strong.”

According to Hub’s report, the most important thing to determine consumer loyalty is that a streaming service have “lower prices than other platforms with similar content,” meaning that it is able to provide comparable content to its competitors without raising prices.

Consumers also want the ability to choose between ad-free and less expensive ad-supported tiers, as both were listed in the report’s top seven features that add the most value for customers.

“These results are encouraging for streamers under pressure to maximize profits,” Hub principal Jon Giegengack said in a statement. “Consumers are feeling the pinch of inflation. But even so, key content like theatrical movies and exclusive originals are as important as cost — great news for platforms that need to raise prices, not lower them.”