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Momentive study: video streaming services – Van Westendorp pricing analysis

Momentive study: video streaming services – Van Westendorp pricing analysis

Key findings:

  • $11 is the optimal price point for a streaming service, according to a Van Westendorp Price Sensitivity analysis.
  • The majority of Netflix users are mostly indifferent about the recent Netflix controversy involving Dave Chappelle’s “The Closer”, although perceptions toward the streaming provider declined most among female and Gen Z viewers.
  • Netflix continues to lead the market in video streaming services, with 4 in 5 viewers subscribed to the service. Amazon Prime Video is a distant second, followed by Hulu, and Disney+.
  • Rising prices and subscription fatigue are the main reasons viewers have cancelled, or plan on cancelling their streaming service. Notably, monthly spending on streaming services is higher now compared to two years ago.

$11 is the optimal price point for a streaming service, according to a Van Westendorp Price Sensitivity analysis.

The optimal price point for streaming services is $11, according to a Van Westendorp Price sensitivity analysis run using Momentive Market Research Solutions. A Van Westendorp model determines the range of acceptable price points for a product by asking consumers how much is “too inexpensive”, “a good deal”, “almost too expensive”, and “too expensive”: 

  • At what monthly price would you think that a video streaming service is too inexpensive to be worth subscribing to?
  • At what monthly price would you think that a video streaming service is a good deal?
  • At what monthly price would you consider a video streaming service to be getting too expensive, but still within consideration?
  • At what monthly price would you consider a video streaming service to be too expensive to consider subscribing to?

This analysis on willingness to pay for a streaming service determined that consumers are most willing to pay between $11 to $16 for a streaming service, with $11 being the optimal price.  However, we see that there is minimal change in demand between the $11 and $14 price point, illustrating potential for a price point that falls within that range.

Viewers mostly unfazed by Dave Chapelle Netflix controversy

Netflix viewers’ perceptions of Netflix are largely unchanged in light of the recent controversy involving Dave Chapelle’s show “The Closer”. 

  • The majority (64%) of viewers who are aware of the controversy say the incident has had no impact on their attitude toward Netflix. 
  • Perceptions of Netflix declined among 16% of viewers, but also improved among a similar number (18%)
  • Male and female viewers had opposite reactions: 19% of women had a more negative perception of Netflix, compared to 13% of men, while only 13% had a more positive view, compared with 23% of men.
  • Gen Z viewers are more likely than older viewers to have a more negative view of the streaming service (22% compared with 13% of Millennial and 16% of Gen X viewers)

Price and subscription fatigue are the leading reasons for cancelling a streaming service, as total monthly spending on subscription service rose over the last 2 years

Monthly spending on streaming services has increased over the last 2 years: nearly 4 in 10 (38%) of subscribers are paying $25 or more per month on streaming services, up from 23% in 2019.

How much do you spend on video streaming services per month?

Oct '19Nov '21
NET $0-$24.9977%60%
$021%15%
$0.01 - $9.9917%15%
$10 - $24.9940%31%
NET $25 or more23%38%
$25 - $49.9915%19%
$50 - $99.995%13%
$100 - $199.992%5%
$200 - $299.990%1%
$300 or more1%0%

In the past month, 28% of U.S. subscribers have cancelled at least one streaming service. Higher costs and too many subscriptions are the leading reasons for cancelling, among both those who have cancelled and those who plan on cancelling.

  • 35% of those who cancelled within the last month cited high costs as their main reason for cancellation, followed by too many subscriptions (17%) and temporarily subscribing to specific content to watch (13%)

Those who plan on cancelling within the next month have similar motivations:

  • 36% of those who plan on cancelling within the next month plan on doing so due to high costs
  • 22% due to having too many streaming services
  • 13% cite running out of content to watch, or having temporarily subscribed to watch certain TV shows or movies

Streaming remains popular throughout the pandemic, although at levels lower than seen in 2020

More than 1 in 3 U.S. adults are streaming more now compared to before the pandemic, similar to levels seen earlier this year in March, but lower than the 50% a year ago. 

  • 35% using a streaming service every day, down from 46% in September 2020
  • 70% stream at least weekly, down from 77% in September 2020 and a high of 79% in May 2020

Compared to before the pandemic, are you using streaming services more, less, or about the same amount?

May ‘20Sep ’20Nov ‘21
More47%50%38%
Same amount43%6%9%
Less9%43%50%

How often do you watch video using streaming services (like Netflix or Hulu)?

Oct ‘19Nov ‘19May ‘20Sep ’20Nov ‘21
NET weekly60%59%79%77%70%
Every day29%31%45%46%35%
Several times a week23%19%28%23%26%
About once a week8%9%6%8%9%
Several times a month6%6%4%6%7%
About once a month5%4%2%4%5%
Several times a year or less frequently8%12%6%5%6%
I have never watched video using a streaming service21%19%9%8%11%

Netflix continues to dominate the streaming scene, as 80% of subscribers use Netflix, up from roughly 60% before the pandemic, and slightly higher than levels from May ‘20 (74%) and September ‘20 (76%). Amazon Prime, Hulu, and Disney Plus also see gains throughout the pandemic.

Which of the following video streaming services do you currently use? (Select all that apply)

Oct ‘19Nov ‘19May ‘20Sep ’20Nov ‘21
Netflix63%59%74%76%80%
Amazon Prime Video41%43%60%61%56%
Hulu33%32%44%46%42%
Disney+NANA31%40%40%
Apple TV+NANA10%13%15%
HBO MAXNANANA17%30%
NBCUniversal’s PeacockNANANA9%21%

Read more about our polling methodology here.