natureaddict / Pixabay It is estimated that six out of ten Poles use streaming platforms, such as Disney + or HBO Max. The boom in both the European and domestic audiovisual on-demand services coincided with the pandemic period. For example, during the toughest restrictions, Netflix doubled the number of subscribers. However, the latest data indicate that the war in Ukraine and the economic uncertainty caused by it have reversed the current trend. According to Blue Media, the number of people who do not use any subscription internet service increased by 5 percent. compared to the same period last year. Compared to 2020, the number of subscribers to e-books, access to online press or sports applications decreased by 3%. On the other hand, platforms that offer unlimited access to movies, music and e-learning are still very popular.
Increase in prices
According to the GP Bullhound report, the pandemic and the war in Ukraine had a direct impact on consumer spending patterns. Galloping inflation and rising energy prices finally translated into subscription prices, which are steadily rising this year. The Player streaming platform, popular in Poland, at the end of the summer holidays changed its price list, increasing the cost of basic monthly packages by PLN 2, and packages extended with HBO by PLN 10. Netflix has also fluctuated prices over the past few years, which has led it to lose a lot of users. In addition to savings, other reasons why consumers decide to cancel a subscription are lack of time, little interesting offer, but also the desire to limit their online activity. According to an analysis by EY (Ernst & Young), a significant percentage of households surveyed in Western Europe and North America are concerned that broadband (60%) and television (55%) providers will increase their monthly subscription rates. At the same time, 27 percent. of households are considering resigning from streaming services.
Who will cancel?
The GP Bullhound report shows that a total of 46 million unsubscribes were recorded in the world in the last year and – interestingly – the youngest users were the first to opt out of these services. It turns out that Generation Z (17%) is the first on the list of consumers who have unsubscribed; next are the millennials (16%), then the bridging generation (14%) and finally the X generation (11%). Another interesting detail of the report is that non-video game applications generated more revenue in June 2022 than online gaming platforms. This is all the more surprising as the rate of interest in online games has increased twice as fast since 2014 as the rate of interest in other services. In order to maintain the interest of users, streaming service providers will have to revise their current strategies. As the EY survey shows, consumers are currently looking for an offer that will be understandable to them first of all (as many as 33% of respondents believe that the service price lists they receive are incomprehensible to them). Another important factor is reliability, understood as support in the event of technical problems.