British purse strings tighten as willingness to spend on streaming services drops

Brits are becoming more frugal with their willingness to spend on streaming services. 

According to new research by The Trade Desk, seven out of 10 people in the country are not prepared to spend more than £20 per month on streaming services, down by £5 from last September.

This comes from an April 2020 survey of 1,500 consumers over the age of 18 in the UK.

It also found that 33% of respondents are unwilling to spend more than £10 per month on streaming services, up from 26% in September 2019. Similarly, the number of people prepared to spend over £25 has more than halved.

The research firm estimates that this could lead to a reduction of up to £97.3 million to subscription-funded services in the UK.

Though the research may cause concern with 60% of Brits already saying that they believe streaming services to be overly expensive, 58% of respondents said that they have signed up to a new streaming service since the start of the coronavirus pandemic.

The research also assessed opinions of advertising-supported streamers. Over two-thirds (70%) of respondents said that they would prefer to see more relevant advertising than pay more to watch TV. Some 84% said that they would be open to ads if it meant they could watch episodes of their favourite shows for free without interruption.

Almost half (47%) said that their preference is for a free or cheaper service supported by ads.

Dave Castell, general manager of inventory and partnerships at The Trade Desk said:  “This data reveals a clear willingness amongst UK consumers to accept advertising if it means accessing their favourite shows for cheaper prices, or for free, but it’s vital that it’s done right. Ads must be creative, relevant and appropriately timed to keep consumers content. In doing so, streaming platforms can generate the revenue they need to keep creating the engaging, entertaining TV that Brits clearly crave, without charging the bill back to them.”