90% of pay-TV subs are interested in upgrading from a basic subscription to a package with added privileges such as discounts and exclusive offers, according to a new Vindicia survey.
Of those, more than half are either “extremely interested” or “very interested” in these types of privileges. In addition, 76% of consumers are willing to pay $3.99 extra each month for a subscription that gives them special access to premium content or members-only benefits, with that percentage increasing to 84% if the price is set at $1.99 extra.
The study also revealed why some consumers choose to cancel their subscriptions. Among consumers who recently canceled, 39% said they didn’t see the value of the subscription, 36% said they no longer wanted the financial obligation, and 34% said the subscription was no longer relevant to them. Another 13% cited billing complications, such as difficulties with updating credit card information and confirming payment details.
“Vindicia’s subscription survey offers two compelling truths,” said Gene Hoffman, CEO of Vindicia. “First, as long as service providers deliver sustained and obvious value for money, customers will stick around. Second, demand for value-added benefits is so high that service providers can consider it a reliable avenue for significant business expansion. Our survey found that despite the notion that consumers don’t want to add significant financial obligations to their lives, they are very willing to pay for the services they value.”