Ad tiering pays off as 36% of subscribers level up to avoid ads
20 Febbraio 2024 - 2:00PM
UK Regulatory
SAN JOSE, Calif., Feb. 20, 2024 (GLOBE NEWSWIRE) --
Following the news that Prime Video is introducing ad-funded
content, new research from Bango shows that ads are delivering
serious gains for streaming and subscription giants. According to
the data, the launch of ad-funded tiers has driven more than a
third of US subscribers (36%) to upgrade their services.
But it’s a dangerous game for subscription providers, with 31%
of subscribers saying they’ve canceled at least one service because
ads were introduced. Strong objections also remain towards ‘premium
ad tiers’, with 78% saying that paid-for subscriptions should
never display ads.
These findings and more come from Bango’s newly released
Subscription Wars 2024 report, which incorporates research from
over 5,000 US subscribers on their habits, behaviors and attitudes
towards subscriptions.
According to the Bango data, acceptance of advertising varies
across different subscription types. While 35% of TV and video
streamers have paid for an upgrade to avoid watching ads, this
figure rises to 48% among music subscribers. For those streaming
sports content (SportsVOD), the number is even higher with a
massive 71% opting to upgrade when ads are introduced into their
services.
Password crackdowns and flexible
subscriptions
The Bango report also highlights the impact of recent crackdowns
on password sharing. Since the new, strict rules were introduced by
services like Netflix, 35% of subscribers have started paying for a
service they previously accessed for free via someone else’s
account.
While these changes are driving subscribers to sign up and pay
out, they’re apparently not enough to keep some people hooked. More
than a third of subscribers (35%) still regularly jump between
platforms, pausing and restarting their subscriptions to access the
content they want. According to Bango’s analysis this demand for
flexibility and cross-platform experiences isn’t going away.
Subscription hubs and ‘Super Bundling’ define
2024
2023 saw services like Verizon +play launch as America’s first
all-in-one subscription hub, ‘Super Bundling’ services such as
Netflix, Starz, Max, Paramount+ and more all in one place.
According to data from the Bango 2024 study, this represents a
welcome trend for subscribers, with 73% saying they want one
platform to manage all of their subscriptions in one place. 69%
would also like the ability to pay for multiple subscriptions via
one monthly bill.
When it comes to offering these all-in-one services, American
subscribers are wary of a return to ‘cable TV’ style packages, with
only 29% wanting their cable company to manage their subscriptions.
Instead, half of subscribers (50%) say they want their cell phone
provider to launch a content hub. The majority of these (61%) would
even pay a higher cell phone bill to receive this service, with the
average subscriber happy to pay an additional $364 per year (+19%
of their annual bill).
Commenting on these findings, Paul Larbey, CEO of Bango said,
“American attitudes towards subscriptions are changing. While many
people predicted that ad tiering would be firmly rejected, in
reality subscribers are welcoming the flexibility it provides.
People want choice. Those who are happy to watch ads accept them,
those who aren’t pay a little extra. The important thing is that
they have the freedom to choose.”
“It’s that same demand for choice that’s driving the move
towards content hubs and Super Bundling. Subscribers want to jump
between different content and services but they don’t want the
admin headache of managing multiple accounts and paying multiple
bills. With the rise of Super Bundling in 2024, we’re expecting to
see that headache disappear. At the same time, these all-in-one
platforms will help drive new revenue for cell phone providers and
allow subscription services to share users rather than fighting
over them. It’s a win-win scenario for businesses and subscribers
alike.”
To find out more US subscriber trends, download Bango’s full
Subscription Wars: Super Bundling Awakens report here.
About Bango
Bango enables content providers to reach more paying customers
through global partnerships. Bango revolutionized the monetization
of digital content and services, by opening-up online payments to
mobile phone users worldwide. Today, the Digital Vending Machine®
is driving the rapid growth of the subscriptions economy, powering
choice and control for subscribers.
The world's largest content providers, including Amazon, Google
and Microsoft trust Bango technology to reach subscribers
everywhere.
Bango, where people subscribe. For more information, visit
www.bango.com
Media contact
Luke Proctor / Tina Sang
Wildfire
bango@wildfirepr.com
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