Rising costs are causing U.K. consumers to reevaluate their streaming subscriptions, according to new data from KPMG, which reports that 17 percent of consumers canceled an SVOD service this year due to increased food bills.<\/p>\n
KPMG also found that 29 percent of people borrowed money or used their savings to cover the costs of media subscriptions since the beginning of this year. The survey, conducted by OnePoll, discovered that 15 percent of consumers\u00a0missed or defaulted on a payment for a media subscription service in the last three months.<\/p>\n
Inflation has seen many U.K. consumers spend more on all their media services, shelling out increased fees for their mobile, TV, streaming and music service subscriptions. During the pandemic, 35 percent of respondents said they increased their streaming subscriptions, but 64 percent are now scaling back due to rising costs.<\/p>\n
\u201cWhile consumers and media companies alike are feeling the pinch, organizations\u2019 customers will value them in the long term if alternative payment options or plans can be introduced to help them continue to use their services\u2014especially for essentials such as mobile,\u201d said Ian West, the head of TMT KPMG UK. \u201cUnfortunately, the current crisis is unlikely to disappear anytime soon, and I hope that this industry adapts to support their customers in times of difficulty.\u201d<\/p>\n
Linda Ellett, U.K. head of consumer markets, leisure and retail at KPMG UK, added, \u201cIt is evident that younger age groups will cut back most on their media subscriptions. This can be partly attributed to the fact that they are likely to have a comparatively lower disposable income than other demographics, and typically exhibit less loyalty and more switching in other purchasing behaviors. It\u2019s also evident that younger age groups have more subscriptions and were spending higher amounts in the first place, meaning they have greater flexibility in being able to make changes to save money.\u201d<\/p>\n
West concluded, \u201cThe dip in subscriber numbers seen so far is merely the tip of the iceberg. The data reveals that since the start of the year consumers are paying for roughly the same number of media subscription services, with the average number declining from 14.2 to 14 overall. Clearly, people haven\u2019t scrapped too many services yet, but are likely to do so in earnest in the second half of 2022.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Rising costs are causing U.K. consumers to reevaluate their streaming subscriptions, according to new data from KPMG, which reports that 17 percent of consumers canceled an SVOD service this year due to increased food bills.<\/p>\n","protected":false},"author":290,"featured_media":12026,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[75,69],"tags":[2963],"class_list":["post-12025","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-analysis","category-top-stories","tag-kpmg"],"yoast_head":"\n