Streaming is Here to Stay, But How Will the Business Model Evolve?
And who will control the largest share? Given the trends we’re seeing in consumer comments, most subscriptions will become ad-supported or bundled with only a few paid, premium services –those with the largest libraries. With hundreds of viewing options on the horizon, consumers are already facing “subscription fatigue.” Those looking to save money will be judicious, choosing the content they want to watch, giving greater consideration to bundles.
E-Score Brand has been tracking consumer sentiments of subscription services and provides indications of the price and value proposition of the subscriptions.
Streaming Hardware is as Critical as the Ad/Pay Model
With cord-cutting becoming a reality for more consumers today, devices that connect to these services will need to appeal to the masses. According to eMarketer, Roku has more users than any other streaming device (excluding smart TVs) at 86.2M in the U.S. and from a recent E-Score Brand survey, Roku has the highest Appeal, at 49%, with close to a third of consumers (31%) agreeing that Roku is Better than competitors.
- While streaming devices are mainly used to watch shows and movies, some have additional features such as games and music. For those reasons, Roku is considered most Entertaining (41%) followed by Amazon Fire TV Stick (40%)
- Other features such as voice activation, 4K resolution, game controller support, (Xbox/Playstation) and brand ecosystem are things users will also consider. With many of the slick bells and whistles included in newer generations, Apple TV leads for Innovative (27%) and Amazon Fire TV Stick (23%) and Apple TV (22%) are considered more Cutting Edge than Google Chromecast (16%) and Roku (15%).
- As streaming devices are fighting to be the hardware of choice for cord-cutters, Apple TV’s early rollout gives it a slight advantage as being High Quality, Innovative and Cutting Edge while the others all have higher Appeal than Apple TV. Consumer comments suggest Apple’s premium pricing may be difficult to justify for most newbies.
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