Half of Canadians Ready to Bail on Ad-Supported Streaming if Prices Continue to Climb
May 22 2024 - 10:21AM
Cost-conscious consumers are threatening to cancel their streaming
subscriptions if prices continue to tick up according to a recent
study by Horizon Media, one of Canada's leading media companies.
Nearly half of Canadian viewers, spanning across all age
demographics—Gen Z (42 per cent), Millennials (46 per cent), Gen X
(51 per cent), and Boomers (49 per cent)—are poised to bid adieu to
streaming platforms should ad-supported options surpass what they
deem a fair price. Of those surveyed, 36 per cent were subscribed
to an ad-supported platform, 39 per cent to an ad-free streaming
service and 26 per cent were subscribed to both types.
Horizon’s ‘Finger on the Pulse’ survey was conducted to better
understand Canadians’ views on ad-tiers and streaming platforms, on
relevant topics such as value perception, user satisfaction,
platform perception, and viewing preferences.
“Many Canadians facing financial pressures have switched over to
ad-supported tiers to save money, but they’re ready to abandon
streaming if prices continue to increase,” said Simon Ross, VP of
Strategy & Insights at Horizon Media Canada. “And while some
are seeking affordability, most still prefer ad-free options and
are willing to pay extra for them. This highlights the need for
streaming platforms to strike a balance between offering
cost-saving options and catering to the demand for ad-free
experiences.”
Relevance is Key in AdvertisingCanadians are
more receptive to ads targeted towards their interests across video
streaming platforms. The study emphasizes the importance of
relevance in advertising, with consumers expressing a preference
for targeted ads over untargeted ones. Across all age groups
viewers are annoyed by the lack of relevant ads they see—Gen Z (62
per cent), Millennials (71 per cent), Gen X (78 per cent), and
Boomers (87 per cent). Ad-supported streaming services are missing
the mark further with 84 per cent of respondents indicating they
are either dissatisfied, or unsure, with the variety of ads they
are seeing. Additionally, 78 per cent say they have never taken any
action after seeing an ad while watching a streaming platform.
Netflix Remains Preferred Streaming ServiceWhen
Canadians tune into a streaming service, it’s usually Netflix
unless you live in Atlantic Canada where Prime Video by Amazon
leads. Of those surveyed, 73 per cent are subscribed to Netflix, 61
per cent to Prime, 35 per cent to Disney-plus, 22 per cent to Crave
and 14 per cent to Apple.
“Canadians prioritize platforms with extensive content
libraries, particularly those featuring Canadian content,” noted
Ross. “This emphasis on content depth underscores the importance
for brands to prioritize advertising on platforms that offer
diverse and locally relevant programming.”
For more information on Horizon Media in Canada, please visit
https://horizon-media.ca/
MethodologyThe study was created by Horizon
Media Canada’s Tipping Point group, using its multi-modal research
and analysis, and multiple sources, including Horizon Media
Canada’s StatsCan provincial panel. More than 1,004 Canadians
nationwide were surveyed from March 14-26, 2024. The survey
employed Horizon Media Canada’s suite of social listening and
cultural intelligence tools, and a blend of trusted secondary
sources, observational techniques, and proprietary and curated
supporting data.
Horizon MediaHorizon Media, Inc, the largest
independent media agency in North America, delivers data-driven
business outcomes for some of the world’s most innovative and
ambitious brands. Founded in 1989, headquartered in New York, and
with offices in Los Angeles, Toronto, and Edmonton, the company
employs 2,400 people and has media investments of more than $9.5
billion. Horizon Media's fundamental belief is that business
is personal, which drives its approach to connecting brands with
their customers and engaging with its own employees resulting in
industry-leading workplace satisfaction levels (Glassdoor).
The company is consistently recognized by independent media outlets
for its client excellence and has earned several "Best Workplaces"
awards reflecting its commitment to DEI and the life and well-being
of everyone at Horizon Media.
Contact:Andrew FindlaterSELECT Public Relations(647)
444-1197
Michael MillsHorizon Media Canada(647) 749-0592