Streaming TV takes a dip – what must marketers do to stay on track!
Published: April 28, 2023
Things were different when the Pandemic controlled our lives. People had no choice but to stay home – and streaming TV made a killing.
But now with life having returned back to normalcy, things are changing. According to a study by Deloitte, there was the finding that at least a third of the millennials intended to reduce the number of streaming services they had subscribed to.
Millennials were once one of the main forces behind the streaming boom – and now they seem to be the ones responsible for the cool-off as well, especially of the subscription video on demand (SVOD), according to the survey. This is the group that spends more than any other on paid streaming video services— which is about $54 a month as opposed to the $48 that the other generations spend. And about 50% of this group that was surveyed said that they were paying too much for these services.
According to the report, the overall subscriber churn for paid SVOD services over a six-month period was said to be at 44%. But when it came to Gen Z and millennial consumers, those numbers actually jumped to 57% and 62%, respectively.
And the main reason for this is the economic conditions that are casting a cloud on spending, holding most people back. About half the people surveyed (47%) have said that they have already made at least one change to their entertainment subscriptions. And it is because of the economic conditions prevalent. They have either canceled a service to save money, or switched to the free ad-supported version of a service or bundling platforms. And the largest group of people to do this, are the Millennials.
What the streaming TV Marketers must do now
One – Streaming TV marketers must turn to social media and gaming – because that is where the younger generation is – the Millennials and the Gen Z. Marketers must explore other media properties that add value, and do what it takes to attract the attention of the younger generation.
They must also advance their ad platforms to better support the advertisers who wish to be there.
That apart, Influencers are a good route to take – marketers will do well to sign up with influencers that have a large following. Now when they recommend your services or some of the shows that you stream, the younger audiences (millennials and Gen Z) will certainly have their interests piqued.
Millennials and Gen Z have the propensity to check out products or services that have been recommended by others – influencers or their trusted peers. They subscribe or buy services or a product, when an influencer or creator that they follow, reviews or recommends it. If an influencer or creator that the Millennials or the Gen Z trust and follow reviews or recommends a brand, they are likely to trust that brand as well.
The younger generation – Gen Z and the Millennials are all about trust and authenticity. So if anything looks like a sponsored recommendation, they can back away from it. They have the general opinion that brands are not really to be trusted but their peers and the creators and influencers they follow, are. So marketers must be careful as they attempt to partner with them.
There is still one more challenge – the younger crowd have a tendency to skip what they think are ads. It might be really tough to capture their attention – which means you need to have some really sharp creative skills and strategies in your holster.
At the end of the day, it all depends on the content that is streamed. If that is questionable or doesn’t spark interest, then there is absolutely no way anyone is going to pay any money for it. Not in these times, they won’t!
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