Streaming services have completely changed the way people consume media, revolutionising customer satisfaction when it comes to watching movies and TV shows. In the comfort of their own homes, customers can access vast libraries of content with just a few clicks. The variety available gives users options they never had before, including different options to search for films through categories like directors or actors. Customers have fun customising their watch lists and finding new shows to watch based on their interests. Customer service is also quickly improving due to customer feedback with streaming services updating programs, user interfaces, and policies in response to customer needs.
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Data for today’s episode is provided by Mercator Advisory Group’s Blog – Subscription Economy Accelerates as Stay-At-Home Lifestyle Spurs Demand
Consumer Satisfaction Varies Across Streaming Services and Box-of-the-Month:
- In general, consumers are more satisfied (75%) with streaming services than box-of-the-month (60%).
- Video streaming is the most highly reviewed online service, with 81% of consumers “highly satisfied” and only 1% “dissatisfied”.
- In contrast, premium apps (65% satisfied) and news/magazines (67% satisfied) have work to do.
- Only 3% of consumers are “dissatisfied” with online subscription services, but 1 in 3 consumers rate themselves only “somewhat satisfied” with premium apps, news, and software subscriptions.
- Consumers are most satisfied with food, health/beauty, toiletries and home goods themed box-of-the-month clubs.
- At 8%, clothing box-of-the-month clubs have the highest rate of “dissatisfied” consumers.
- Almost 40% of consumers find books/education & accessories themed box-of-the-month clubs only “somewhat satisfying”.
About Report
The subscriptions economy has become a growth segment of the U.S. services economy. While subscriptions go back many years, it’s been the digitization of commerce and consumer purchase behavior that now drives the subscriptions market. Through 2022, online subscriptions will find higher growth due to continued consumer popularity of streaming services and software. Payments firms, including ISVs, merchant acquirers, and payment gateways, must understand the subscription management requirements of sellers and key trends that are driving market growth. A new research report from Mercator Advisory Group, Subscription Economy Accelerates as Stay-At-Home Lifestyle Spurs Demand, sizes up the U.S. online subscriptions market and its future direction.
“Video and music streaming has led the rapid growth of online subscription services for stay-at-home households during 2020. Online subscriptions have become a growth area within e-commerce and will continue in the foreseeable future. Bundled subscriptions prove to be a winning marketing strategy for the leading industry players such as Amazon and Apple and consumers have responded enthusiastically,” commented Raymond Pucci, Director, Merchant Services Practice at Mercator Advisory Group, the author of this report.
