A new study from Ampere Analysis sheds light on the spending habits and loyalty of young adults (18-34) regarding subscription-based content services. The research reveals a surprising trend: this demographic spends more than any other age group, yet demonstrates the highest likelihood of canceling services that don't meet their expectations.
While 36% of those considering leaving a service cited cost as a reason, the study emphasizes that price isn't the only determining factor. Access, variety, and convenience play a significant role. This group is also more inclined to rent (+29%) or buy (+15%) films and TV shows, indicating a flexible approach to content consumption.
The report highlights a remarkable degree of fluidity in their subscription choices. Over half (58%) of young consumers admit to subscribing, canceling, and resubscribing to video-on-demand services based on available content – a figure significantly higher than the global average of 40%.
Isabelle Charnley, Consumer Analyst at Ampere Analysis, comments on these findings: “The growing signs of indifference among young consumers towards subscription OTT services signals a need for platforms to rethink their position. While viewers subscribe to more SVOD services than ever, loyalty is increasingly reserved for a select few.” She further explains that many 18-34 year olds favor social media for its quick, easy-to-access content, avoiding decision fatigue associated with choosing from numerous streaming platforms.
Charnley adds: “To stay relevant, streamers must either position themselves as lean, cost-effective complements to premium services, with a clear and defined role in the content stack or elevate their core value proposition to justify a higher price point. Players must deliver deeper, more consistent value through engaging content, flexible access, and a compelling user experience that keeps audiences coming back.”