Study: Consumers Looking to Amp Up Subscriptions76% Willing to Pay $3.99 More Per Month for Exclusive Perks 3/08/2016 8:00 AM Eastern
The vast majority of consumers (90%) are interested in upgrading from a basic subscription to one that includes valuable privileges, including discounts, exclusives and access to events or activities that involve other subscribers, subscription billing specialist Vindicia found in a new study, Consumer Demand for Value-added Subscription Services.
The survey, based on data from 1,000 U.S. adults who have at least one paid subscription, also found that 76% of the group would be willing to pay $3.99 more per month for a subscription that gives them access to premium content or other members-only benefits. That rises to 84% if that price is set at an extra $1.99 per month.
Among consumers surveyed who have multiple subscriptions, those that that deliver over-the-top video/video-on-demand services were the most important to them (40%), followed by shopping (32%), then audio (9%) (see chart).
OTT/VOD was also the most frequently used subscription service (42%), followed by shopping (28%), audio (13%), and print media (5%).
Broken down further, 45% said OTT services such as HBO Now, Netflix and Hulu were the most important to them, while 30% cited shopping services such as Amazon Prime and Google Express, and just 8% identified audio services such as Apple Music, Pandora, Spotify and Audible.
Regarding engagement, Vindicia found that 30% of consumers used their most-utilized subscription service at least 20 hours per week, while 28% used them between 11 hours to 20 hours per week, and 42% used them between 1 hour to 10 hours per week.
Vindicia’s study also shed some light on why some consumers opt to cancel their subscriptions. Of those who recently canceled, 39% said it was because they didn’t see the value in the subscription, 36% said they no longer wanted the financial obligation, 34% said the subscription was no longer relevant to them, and 13% cited billing issues, such as difficulties updating credit card info or confirming payment details.