Generation Z is looking for options to save money
In the last few years, the majority of video streaming services, such as Netflix and Disney+, adjusted and increased their subscription fees to drive income growth. However, a survey from August 2023 found that younger demographics were more likely to terminate a subscription than their older counterparts because of price increases, with over 40 percent of Gen Zers in the U.S. having canceled at least one service. What is more, over half of Gen Z adults responding to another survey use someone else’s streaming credentials, while nearly 50 percent of this generation shared their accounts with others, perhaps to combat rising costs. Also, companies’ incentives such as price promotions are very popular among younger age groups. As of August 2023, two in three Gen Z consumers subscribed to streaming services as part of a mobile phone promotion. By contrast, the share of baby boomers signing up for such a bundle amounted to just 23 percent.Content is still king among Gen Zers
Another important factor for Generation Z to consider when subscribing to a streaming service is newly released content, as well as first-run and blockbuster movies, particularly those recommended by social media. In order to manage all their subscriptions and watch recently published TV series and movies at the same time, they simply sign up for a streaming service when there is a program they want to watch and cancel once the program is over. As of October 2023, around 60 percent among the 18- to 34-year-olds interviewed in the U.S. used this practice called subscription cycling, compared to 43 percent among all respondents.Generation Z is the generation that watches more online video content than any other, and their consumption behavior notably differs from their older peers. To meet the expectations of this dynamic generation, the challenge for streaming services will be to provide highly anticipated content for a price Gen Z is willing to pay.
