US streamers’ service satisfaction starts to decline
The fourth instalment of JD Power’s streaming pulse survey was taken in July 2022 and consisted of responses from 1,287 US adults who shared their viewing preferences, usability challenges and plans for using these subscription-based services.
The study showed that fundamentally viewers increased their number of subscriptions, with 60% having at least four services, up from 57% in June 2021. Netflix was the largest and most popular brand among survey respondents. More than twice as many customers (39%) chose Netflix than the next most popular services, Amazon Prime Video (14%) and Hulu (14%). Streaming quality problems issues decreased, with 80% of viewers reporting no problems.
Yet the survey also found that streaming services may be heading into tougher times and that subscriptions may have peaked. It noted that not only was the competition fierce and cost of acquiring and producing content high, subscribers may be nearing their limit with how many subscriptions they carry and what they spend.
More than four-fifths (82%) of streamers expected to maintain their current line-up and make no changes to their services during the next 30 days. Only 9% planned to add a new service. Interestingly, an increase in the number of streaming subscriptions did not lead to higher overall reported costs. The average reported monthly household spend on all streaming services remained relatively consistent at $54 in July 2022 compared with $55 in June 2021. JD Power warned that the cost plateau will be short-lived, as price hikes have recently been announced by multiple providers. It added that the likely merger of HBO Max and Discovery+HBO Max and Discovery+ will likely result in a new—and more expensive—pricing structure.
Despite only declining slightly to 4.86 in July 2022 from 5.03 in June 2021, overall satisfaction was the lowest since this survey’s inception. Additionally, fewer respondents considered their streaming service to be “perfect”, 10% in July 2022 compared with 15% in June 2021.
To stand out from the competition, JD Power advised brands that they might prioritise further developing an intuitive, dependable user experience that marries premium content with ease of navigation, personalised recommendations, and cross-platform reliability. The streaming pulse survey also added with subscription rates rising—and streaming satisfaction declining across the board—focusing on delivering a delightful user experience is the best way for providers to retain loyalty and drive growth.
Customers who have been with their streaming provider for less than one month are most likely to indicate they are planning to drop a streaming provider within the next 30 days (19% compared 10% for the total industry). Rapid TV News