What consumers want from streaming services

By Michelle Wroan

Just ahead of last month’s Apple TV+ and Disney+ launches, KPMG completed a study on U.S. consumer preferences when selecting video streaming services. The quantitative data, based on our survey of more than 2,000 current subscribers age 18-60, provided great insight into the factors consumers consider most important in making their streaming choices.

Equally revealing were the more than 1,500 responses to the open-ended question: “if you could change one thing about your favorite streaming service, what would it be?”

The responses illuminated the following key themes:

The majority of answers focused on content mix, but covered a wide range of preferences including a desire for: more choices, better quality content, older shows, newer shows, deeper libraries of movies and TV shows, more original content, less original content, interest in specific genres, etc.

Movies were a significant area of focus, with a greater desire for newer releases, better quality movies, and a broader selection on streaming services.

A large number of respondents cited price as an issue, with a preference for lower prices and more free services.

Advertising was a major theme among the 18-24 age group. Comments centered heavily on getting rid of ads entirely, or reducing the number of ads. The 25-60 age group expressed similar sentiments, however, it was a much smaller percentage of respondents.

People also focused on ease of finding content, noting a desire for better search options, more intuitive user interface(s) and more accurate recommendation engines.

There were also a number of comments expressing a desire for a consolidated streaming environment accessible through a single app or entry point.

More than a few respondents also expressed interest in sports options, live streaming, and a greater ability to download and view content offline, even if only for a limited period of time.

The seven themes together point to a fragmented video streaming market on the cusp of a significant inflection or pivotal transition as additional major players join the competition.

It will be some time before we know which providers maintain or build a dominant position, as the enthusiastic anticipation of the new entrants gives way to the reality of executing against the technical, price and content demands of the consumer. This presents a great opportunity for successful providers and great risk for those who fall short.

To speak with Michelle about the media industry, please contact Mike Alva, mobile (925) 878-5488, malva@kpmg.com; Twitter - @michaelalva.