What’s the Best Price Point for a Streaming Service? $11

Momentive Market Research Solutions
(Image credit: Momentive Market Research Solutions)

SAN MATEO, Calif—As spending on streaming services continues to rise and costs become a major factor in the decision to drop services, a new survey and analysis by Momentive Market Research Solutions reports that the optimal price for SVOD services is about $11.

A Van Westendorp Price sensitivity analysis run using Momentive Market Research Solutions “determined that consumers are most willing to pay between $11 to $16 for a streaming service, with $11 being the optimal price,” Sam Gutierrez reported in a blog post on the survey. “However, we see that there is minimal change in demand between the $11 and $14 price point, illustrating potential for a price point that falls within that range.”

The survey also found that 38% of respondents were spending more than $25 a month on streaming services in November of 2021, up from 23% in October of 2019 and that 29% were paying $25 to $99.99 a month, up from only 20% in October of 2019.

This was making consumers much more cost sensitive, with 28% of U.S. subs cancelling at least one service in the last month. Higher costs (38%) and too many subscriptions (17%) were cited as the two main reasons for dropping a service. 

Another 15% said they planned to cancel a service in the next month. 

Streaming remained very popular according to the survey data, with 50% reporting they were streaming more, but only 6% said they were streaming about the same amount and 43% reported they were spending less time streaming in September of 2021.

Netflix continued to be the top streaming service, with 59% saying they subscribed, followed by Amazon (43%) and Hulu (32%). 

About 27% reported spending 11 or more hours a week watching streaming services, with 43% reporting watching one to five hours and 31% six to 10 hours a week.

The survey also highlighted ongoing bad news for cable TV. Only half (50%) of respondents reported having a cable or satellite TV subscription and another 28% said they used to have one but cancelled. The survey also found that 39% were very likely (14%) or somewhat likely (20%) to cancel their pay TV subscription. 

More data and information on the survey is available here.  

George Winslow

George Winslow is the senior content producer for TV Tech. He has written about the television, media and technology industries for nearly 30 years for such publications as Broadcasting & Cable, Multichannel News and TV Tech. Over the years, he has edited a number of magazines, including Multichannel News International and World Screen, and moderated panels at such major industry events as NAB and MIP TV. He has published two books and dozens of encyclopedia articles on such subjects as the media, New York City history and economics.