During the pandemic lockdown days of 2020 and 2021, online streaming services were all the rage— Disney +, Netflix, Amazon Prime, and the like. Singaporeans spent approximately nine hours per week on average in 2020 watching online streaming content. This is two hours higher than the global average.
Industry watchers predicted that streaming popularity would decline as the world began to open again. In Blackbox’s latest study: ‘Emerging From The Pandemic: The New Mood In Singapore”, 61% of polled Singaporeans expressed a likelihood of cancelling at least one streaming subscription in the next 6 months.
What made streaming tick?
Streaming platforms developed a highly popular bingeing model. This model basically allowed viewers to binge watch shows instead of waiting for weekly episodes. During the lockdown period, binge watching was a popular choice for many bored Singaporeans. Regardless of the reasons, our data shows that despite high enthusiasm for streaming services, a substantial number of Singaporeans (40%) do not subscribe to one.
What’s changing with the pandemic loosening its grip?
The binge-watch model is slowly coming under threat as more distractions are available to catch the attention of viewers. Many Singaporeans are already heading out of their homes for entertainment. The meme “touch some grass”, is now a popular saying to tell people to head outside. More Singaporeans are also commuting to the office. With limited hours in a day to their disposal, there does not seem to be all that much time for Singaporeans to binge watch their favourite Netflix series.
The streaming companies seem to have realised this. Some streaming platforms are beginning to revert to a weekly release schedule. Disney’s Moon Knight was released on a weekly basis. Netflix’s Stranger Things Season 4 was released in two chunks. This is a clever move as weekly episodes provide more time for Singaporeans to catch up on their favourite dramas. Being forced to binge watch their favourite shows with all the distractions around them and trying to avoid spoilers can ruin the viewing experience.
While touted as being cheaper than cable, is this true?
It is true that when compared to individual streaming services, cable seems expensive. But this no longer holds true when one considers the fact that one streaming service does not always cut it for those looking to get their entertainment fix from a variety of sources. What’s available on Netflix, for example, is exclusive to it so if someone wants to watch something on Amazon Prime Video or Apple TV, then that’s another few dollars to shell out. Moreover, Disney Plus is usually a given for homes with children, and with all the content from the Marvel Universe moving there too, it would be a necessary addition for many, or at the very least for the dedicated fanbase that is quite substantial in number.
All combined, this doesn’t seem like a ‘cheaper’ option. Moreover, even when it comes to varied content, it can be argued that with 150+ channels, it is not that cable TV offers limited options either. So, it comes down to a matter of cost and preference eventually.
Streaming Services vs. Cable TV – A price comparison
The way forward for streaming companies
With rising costs and inflation making consumers cut down on unnecessary purchases, streaming services would need to make their offerings more cost-effective with periodic discounts, and possibly lower starting price points. Additionally, a combo offer that allows people to subscribe to more than one of their preferred platforms could make it a better value proposition. As things currently stand, only 36% of those polled have more than one streaming subscription, and when you take into consideration the demographic of people cutting down one of their subscriptions, it doesn’t augur well for streaming companies looking to garner more subscribers. As for cable, despite all the predictions spelling doom for it, consumers might be rethinking whether keeping it going might be a wise choice after all.
It can be hard to keep up with consumer trends in an ever-changing world, so if you’d like assistance with understanding the evolving preferences of your client base, get in touch with us on connect@blackbox.com.sg
Author: Blackbox Research Team
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