Deloitte Media Survey - A tipping point for digital entertainment subscriptions?

Chris Pash
By Chris Pash | 20 September 2021
Credit: Egor Myznik

Audiences are fast approaching a tipping point on how many digital entertainment subscriptions they can handle to get the content they want, according to the latest consumer research. 

Deloitte has released the 10th edition of its Media Consumer Survey of 2,000 people, drilling down into Australian audience preferences.

On average, respondents already feel they spend about 10% above their monthly subscription budget.

More than two-thirds (71%) indicated they have cancelled a service previously and more than a quarter (27%) dropped an entertainment subscription before joining the same one again.

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Leora Nevezie, Deloitte's national media sector leader and partner, says subscriptions are no longer a nice-to-have, they are almost a household utility.

Four in five (almost 80%) of the survey respondents pay for at least one digital entertainment subscription with an average monthly household spend of $55.

The media and entertainment industry has seen huge digital acceleration in the past 18 months among rolling lockdowns and restrictions with audiences reaching for remote controls, laptops, tablets and phones as a source of critical information and a welcome distraction. 

Many (42%) have more subscription services than they did a year ago, and 70% have a paid TV/movies service in the household, up from 55% last year.

Almost all (95%) Gen Z have at least one paid digital entertainment subscription service, closely followed by 93% of Millennials, and 60% of both Gen Z and Millennials having more subscriptions now than a year ago.

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“We are well and truly in the age of the entertainment subscription - but how many can we have before both the experience and our budget break?” says Nevezie.

Managing and consuming multiple services is becoming complex and expensive. The race is on to lead the way on audience experience, says Nevezie.

The average household is spending 10% more on subscriptions than their target budget and 58% said they were concerned about the rising costs of multiple subscriptions.

Two out of three respondents want to search and discover all content in one place, and more than half want to be able to subscribe to bundles of services in the one place.

Nevezie says audience experience will be the next battleground, with aggregation and entertainment ecosystems taking centre stage and a shift from chasing new subscribers to focus on audience value management.

Pay TV providers, telcos and the digital giants all have potential roles in aggregation solutions.

“Alongside this aggregation is a trend of consolidation – entertainment providers consolidating and converging their products and services to create entertainment ecosystems where audiences can move between content and services that are both free and paid, and with multiple revenue models," Nevezie says.

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