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Why streaming services like Amazon Prime are beating cable

Netflix vs. Hulu vs. Amazon vs. Cable

Have you ever walked into the office, only to catch yourself in the middle of a discussion about last night’s episode of Bridgerton? And during a recent night out, did your date ask which shows you watch on Netflix?

The world of instant streaming is becoming a necessity, not only for self-entertainment but also for connecting with others. As signs have pointed towards a shift in fully embracing instant streaming, we’ve become curious to understand how the trend is evolving and why it’s happening.

To find some answers, our research team surveyed over 1,300 adults across several demographics, asking them questions about their television and movie viewing preferences and behaviours.

Interested in conducting your own research? Learn more about your target market’s background and preferences using SurveyMonkey Audience.

Here’s what our research tells us:

Over half (52%) of our respondents would pay for streaming services only. This is quite striking if you think about it. The respondents aren’t just saying that they prefer streaming services to cable or would rather stream only as opposed to bundling it with cable; they’re saying that streaming services alone are worth paying for.

This trend is most popular amongst millennials, where more than two-thirds (69%) would prefer to go their own way and only pay for streaming services.

Yes, Netflix is undoubtedly a leader in the online streaming space, thanks in large part to their original programmes, but individuals are diversifying the platforms that they use for watching TV shows and movies.

When asking our panel which platforms they watch videos on, we found YouTube and Netflix to be on top (watched by 59% and 56% of respondents, respectively), followed by Amazon Prime at 29% and Hulu at 20%. As three of these four platforms require separately paid subscriptions, it’s clear that viewers have an appetite for a diverse set of streaming options.

Millennials’ responses were once again magnified in comparison. Netflix and YouTube were still number one at 77%, but Amazon and Hulu jumped up to 34% and HBO Now/Go moved up to 27%.

So, we can see that people prefer streaming services and are open to using several of them, especially millennials. But why is that? Here’s a breakdown of the key drivers behind their growth:

Convenience: 64% of our respondents would gladly exchange the opportunity to watch a movie at the cinema for a chance to watch it at home on their computer. In other words, despite all the pluses of going to the cinema, such as a bigger screen, a chance to see the movie sooner and a night out with friends and family, the convenience and comfort of watching it at home is too appealing.

Control: When using your TV, how often do you find yourself flicking through the channels, only to turn it off because there’s nothing interesting on or the adverts start to get on your nerves?

Streaming services put the control in the viewer’s hands. Do you want to watch the next episode of ‘Downton Abbey’ on Amazon Prime? If so, all you have to do is visit the show’s page and click ‘next episode’. Are you looking to watch the movie ‘Nonnas’ on Netflix now? If so, that’s easy.

Nearly three quarters (74%) of our respondents prefer to customise the channels and programmes that they watch, and with cable’s inflexibility in terms of being able to pick and choose specific programmes or remove unwanted adverts, streaming services come out on top.

Cost-effective: The demand for movies and TV shows is sky high. In the U.S, adults watch a whopping 35 hours of television on average per week.

To meet demand over there, streaming platforms are offering a massive number of programmes at a low cost. Amazon Prime for instance, has over 20,000 movies and television shows available at a cost of £8.99 per month, plus access to other benefits such as unlimited one-day delivery. This is much less expensive than the cost of an average household cable bill.

The long-term business viability for subscription streaming services looks strong. Why? Original programming isn’t the only priority for consumers.

57% of our respondents use streaming services for programmes that have already been released. For millennials, the figure spikes up to 65%. This news may come as a relief to the companies that offer instant streaming because creating original programmes often proves to be costly. The nature of consumer demand is such that streaming platforms have a chance to narrow down their original content offerings to a few original TV shows/movies while focusing their attention on purchasing the rights to stream in-demand pre-existing programmes.

What’s the takeaway from all of this? People prefer to pay for streaming services only, often pay to use several streaming providers and are more interested in watching pre-existing programmes. As each of these factors points to the health of the subscription streaming market and is especially true among millennials, the trend towards using subscription streaming services looks set to keep growing.

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