An EY study reveals rising concerns over the price of streaming sites and troublesome connectivity, despite continued surging demand for premium services.
Anxiety about rising monthly subscription costs is rising, according to research from leading consulting firm EY.
The findings in Decoding the Digital Home reveal that 62% of UK consumers are apprehensive of future price changes, with 62% of UK consumers highlighting their anxieties. However, nearly half (48%) of consumers have expressed a willingness to pay a premium for the convenience of content aggregation via a single platform, EY says. This is a sharp rise from 36% in 2023.
In recent months, UK households have been confronted with a range of financial anxieties amid the cost of living crisis. Now, EY states 34% are considering more economical broadband options and 47% are open to ad-supported streaming services for a lower subscription rate.
Rob Atkinson, EY UK & Ireland Managing Partner for Technology, Media and Telecoms, explains: “In a landscape where people are closely monitoring their finances, our latest findings reveal a complex picture of consumer behaviour in the UK.
“The year-on-year increase in the pursuit of premium streaming offerings, especially among those in their mid-thirties to mid-forties, highlights a sophisticated consumer base that values not just price, but the richness and convenience of their digital lifestyle.”
Subscription services remain dominant
Consumers cancelling platform subscriptions has also become a prevalent feature of the streaming market in recent years. This year, EY notes that 31% of household respondents, on average, have cancelled in the last 12 months or plan to cancel at least one streaming subscription service, in line with last year.
Decisions to cancel are primarily driven by the need to cut costs (50%) and watching the service less than before (15%). However, EY explains that one-third of those surveyed are re-subscribing to one or more services they previously cancelled – a finding that underlines the importance of streaming platforms’ “win-back” strategies.
Amid a landscape of continually rising prices, consumers are still searching for value. Whilst performance continues to be a key driver in broadband purchasing decisions, EY finds that the reliability of networks remains a significant concern for consumers.
Almost one-quarter (23%) of household respondents are still experiencing unreliable home internet, despite ongoing network upgrades. Households are seeking more credible service promises, higher perceived value, and greater convenience, emphasising the importance of trusted brands in the digital home sector.
Alongside an appeal for improved connectivity, content and home technology continues to grow, with consumers prepared to take more radical steps in search of higher value.
In line with this, 5G mobile is increasingly becoming a substitute for traditional home broadband, with 33% of households prepared to make the switch, provided their mobile connection can offer the same level of performance.
Rob says: “The broadband market is witnessing a demographic shift, with younger users leading provider switches. Providers must simplify the switching process and communicate value effectively; particularly as older demographics prioritise network quality and pricing transparency.
“This nuanced consumer behaviour underscores the need for tailored engagement and service assurance to maintain and grow customer bases in a cost-conscious era.”
EY calls for digital wellbeing
As streaming services and social media sites continue to boost their global presence, EY highlights there are concerns over the effect of prolonged digital usage on people’s mental health.
KEY FACTS
- 38% of all respondents often consider the negative impact of being online on their own well-being
- 41% of UK households are concerned about the levels of screen time in their home
- 47% of 18-34 year olds say that being online is more of a hindrance
Rob Atkinson adds: “It’s becoming increasingly clear that our online habits have a profound impact on our mental health and overall well-being. This year’s survey reveals a concerning trend, with more than a third of respondents acknowledging the adverse effects of digital consumption on their personal well-being.
“As the conversation around digital well-being gains momentum and smartphone bans for children become a focal point of public discourse, it’s imperative for service providers to reflect on these insights and establish a stance that resonates with and supports the needs of today’s families.”
