Consumer Preferences Highlight the Demand for Hybrid Video Subscription Packages

New Trends in Consumer Video Preferences

Recent research by Parks Associates indicates a significant trend among U.S. internet households regarding their video consumption preferences. The study, titled The New Live TV Model: Skinny Bundles, Sports, News, reveals that 51% of these households are now favoring video subscription packages that blend live television with on-demand streaming services. This shift signals a growing demand for hybrid models in the video entertainment market.

Understanding the Consumer Shift

According to the findings, the appetite for a combined service is evident, with 27% of respondents expressing a preference for a live-TV bundle that integrates their favored streaming services. Additionally, 24% showed an inclination towards skinny bundles paired with their favorite platforms. This preference not only showcases the popularity of streaming but also emphasizes the continued value consumers place on live TV.

Michael Goodman, director of entertainment research at Parks Associates, elaborates on this emerging trend, stating, "Consumers are not necessarily choosing between live TV and streaming. Many want access to both in one package." This indicates that video service providers have a golden opportunity to create packages that cater to this demand, enhancing flexibility and value.

The Appeal of Skinny Bundles

The research also highlighted that 68% of subscribers to streaming pay-TV services, including well-known brands like YouTube TV, Hulu + Live TV, Fubo, and DIRECTV Stream, find skinny bundles appealing. These bundles typically offer a limited selection of core channels focused on specific content themes, such as entertainment, sports, or news, and are priced lower than traditional all-inclusive packages.

Goodman notes that despite the increased interest in streaming, live television remains a priority for consumers. The transformation in how live TV is packaged is a response to changing consumer needs, aiming to strike a balance between extensive channel offerings and cost efficiency. Skinny bundles provide a middle ground for viewers who wish to retain live TV access while being mindful of subscription costs.

Addressing Consumer Concerns

As trends evolve, consumers are becoming more price-sensitive, leading to increased dissatisfaction with larger, traditional channel packages. The emergence of skinny bundles presents an effective solution, giving existing subscribers additional options to prevent service cancellations, a significant concern for service providers. Goodman emphasizes the importance of retention, stating, "These packages can give existing subscribers another option before they decide to cancel service entirely."

Upcoming Events and Insights

Parks Associates will be conducting a webinar titled Streaming Video Churn, Loyalty, and Competition on September 24, where they will share additional insights from this research along with data from their ongoing Streaming Video Tracker—an extensive database tracking over 400 streaming services across North America.

Furthermore, the firm is set to host its ninth annual Future of Video Business of Streaming event on November 17-18 in Marina del Rey, California. This event will explore key topics such as hybrid monetization models, platform expansion, pricing strategies, and the overall state of the streaming market.

For media inquiries or further information on these events, stakeholders can reach out to Mindi Sue Sternlitz-Rubenstein at Parks Associates.

Conclusion

In conclusion, as video consumption patterns continue to evolve, providers must adapt to meet the dual demand for live and streaming content. The findings from Parks Associates serve as a crucial indicator of where the market is heading and highlight the importance of flexible and consumer-centric video packages.