Popularity of Streaming Services Stems from Quality Content, Not Affordability

Streaming services have started to surpass most cable networks and replace TV based media consumption as a whole with all things having been considered and taken into account. Numerous different streaming platforms have popped up after Netflix sparked a veritable revolution in the industry, and countless people are switching to using streaming services entirely with cable packages and the like turning into relics of a bygone era.

Around 38% of US households have stopped paying for TV services entirely, and they instead rely solely on streaming services to get the content that they desire. With all of that having been said and now out of the way, it is important to note that this has increased by 26% from a year ago, and now the vast majority of US households, or 80% to be precise, use some kind of video streaming platform for at least some portion of their entertainment needs.

One thing to note is that the two biggest players in this field, namely Netflix and Amazon Prime, have seen their rate of growth decline somewhat. They managed to reach a 56% and 42% share of US households respectively by the first quarter of 2022, but they failed to make gains that were similar to what they saw in previous years. Some are suggesting that the recent price hikes that both platforms have implemented might have something or the other to do with that, but in spite of the fact that this is the case a report that was just released by MoffetNathanson suggests otherwise.

This report suggests that users prefer to use streaming platforms because they feel like they get better quality content from them. Price has less of a say in their decisions in this regard, and they instead subscribe mostly because a particular platform has a show that they are trying to watch. 23% of Hulu subscribers said that they made an account because of some shows that only this platform had, and this can impact the decisions these platforms would make moving forward especially Netflix which has built a bad reputation for having mostly poor quality content.

H/T: TheStreamable

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