"Consumers in America would pay twice as much 10 years ago for content. People were spending, on average, $55 for content 10 years ago, and the quality of the content, the amount of content that we're getting, the spend is 10 or 12 fold and they're paying dramatically less. I think we want a good deal for consumers, but I think over time, there's real opportunity, particularly for us, in that quality area, to raise price."
"Zaslav is arguing that the quality of the shows and movies on HBO Max warrants an eventual price bump. But, in general, viewers find streaming services are getting less impressive. A Q4 2024 report from TiVo found that the percentage of people who think the streaming services that they use have "moderate to very good quality" has been declining since Q4 2021."
"Research also points to people being at their limit when it comes to TV spending. Hub Entertainment Research's latest " Monetizing Video" study, released last month, found that for consumers, low prices "by far still matters most to the value of a TV service." Meanwhile, niche streaming services have been gaining popularity as streaming subscribers grow bored with the libraries of mainstream streaming platforms and/or feel like they've already seen the best of what those services have to offer."
Ten years ago, consumers spent about $55 on content while content quantity and production have grown significantly and consumer per-service spending has fallen. HBO Max leadership views its higher-quality shows and movies as justification for future price increases. Independent reports show a declining share of viewers rating streaming quality as moderate to very good since late 2021. Research indicates many consumers are at their TV spending limit and prioritize low prices. Niche streaming subscriptions are rising as viewers seek specialized libraries. WBD's streaming unit remains profitable and reports growing subscriber-related revenue.
Read at Ars Technica
Unable to calculate read time
Collection
[
|
...
]