UserTesting’s latest Media & Entertainment Pulse Report highlights evolving consumer behaviours and expectations within the streaming industry. While personalised recommendations continue to satisfy, with 72% overall satisfaction and 75% for male respondents, significant shifts in consumer frustrations and subscription patterns are emerging. Notably, concerns over rigid account-sharing controls have surged by 70% quarter-over-quarter, indicating a growing point of contention for viewers.
In addition, the report reveals increased churn among high-spending streamers. Those spending over $50 per month saw a jump in frequent cancellations from 26% to 31%. This suggests that even premium subscribers are becoming more selective, driven by factors beyond price increases.
In contrast, digital content spending remains largely stable, with 90% of consumers allocating $50 or less per month, suggesting a reallocation of funds rather than a reduction in overall spending.
Personalisation and AI
Personalised recommendations remain a key driver of satisfaction, but disparities persist across demographics. Male viewers, for instance, report higher satisfaction than female viewers, signalling potential biases in recommendation algorithms.
Regional differences also highlight the need for localised content strategies. Streaming services must invest in diverse datasets and user testing across different geographic segments to address these gaps.
Simultaneously, trust in AI-driven experiences is on the rise. 61% of respondents now believe AI will deliver a positive experience, up from 58% in the previous quarter. This growing acceptance underscores the importance of transparent AI implementation, emphasising its role in enhancing user experiences while maintaining privacy and control.
Navigating shifting frustrations and retention
While price hikes remain a primary concern, the report reveals a significant increase in dissatisfaction with account-sharing restrictions. This shift necessitates a strategic response from streaming platforms, focusing on transparent communication, tiered pricing models, and value-added incentives. Additionally, the increasing churn among high-spending subscribers requires a focus on reinforcing subscriber value through exclusive content, personalized recommendations, and bundled offers.
Streaming providers can refine their strategies and maintain a competitive edge by analysing cancellation behaviours and addressing user concerns.