Younger consumers are increasingly attracted to ad-supported subscriptions on streaming platforms for their attractive price. — AFP Relaxnews
One of the latest tactics of streaming platforms, ad-supported subscriptions are beginning to make their mark on the market. Netflix, and Disney+ have all jumped on this trend, while Amazon's Prime Video may soon follow. But will young consumers get on board? According to a recent study, they’re well on their way...
Streaming isn’t losing any steam. According to the latest Nielsen data, consumption of streaming platforms even reached record levels in July. And yet, while young people are increasingly turning to these platforms to avoid the TV ads seen on broadcast TV – up to 68% among 13- to 39 year-olds cite this reason, according to a YPulse study – it would seem that the current economy, marked by inflation, has changed the game, even if 77% of them consider it a worthwhile expense. Fewer and fewer young people are paying for a subscription to a streaming platform, 54% now versus 65% in 2021.
With an average of three streaming platform subscriptions, they pay around US$40 a month – a not-negligible expense that now poses a problem for some young consumers. According to a study carried out by YPulse on a sample of over 1,500 people aged between 13 and 39 in North America, 35% of Gen Z and Millennials say they would cut back if the economic situation worsened.
This is where ad-supported platform subscriptions come in and are drawing the attention of young consumers. Thanks to more attractive prices, 39% say they are interested in this alternative, while 29% have already signed up for such offers. Only 31% of young people say they would not choose this new model.
Millennials less averse to advertising
While Disney+ has announced its new ad-supported subscription offer in Europe after launching it in the US, a report by YPulse shows that 40% of young people use the streaming platform every week. A third of young Netflix consumers, however, say they don’t want to give in to this new type of subscription.
Millennials (41%) and parents of this generation (46%) are more inclined to take advantage of these ad-supported subscriptions, in contrast to Generation Z (36%). Users who are already parents are also more interested in streaming platforms to entertain their children: 61% versus 50% for users without children. – AFP Relaxnews
