As streaming companies scramble to turn loss-making streaming services into profitable ones, a new survey from Amdocs suggests that one of their best hopes for finding new revenue and expanding their business opportunities lies with younger Gen Z consumers.
The survey of 1,000 U.S. consumers conducted by Amdocs found that a number of the emerging opportunities to both continue growing subscribers and revenue were often driven by Gen Z consumers.
It found that Gen Z is spending heavily on digital subscriptions, more than any other generation and that they are more open to ads and very interested in gaming, an area that Netflix is already trying to exploit. They are also looking for a single place to access all their streaming apps and that they are looking for streamers to improve the user experience.
More specifically, the survey found that younger consumers want:
- More Viewing Options: Half (50%) of consumers want the ability to stream on a variety of devices (e.g., phone, tablet, TV, computer, etc.). This is particularly important for Gen Z (60%) and those between the ages of 26-35 (75%).
- Increased Syndication: Nearly all (90%) of Gen Z wishes that streaming services would increase the syndication of their original content to other streaming services (e.g., being able to access Netflix original content via a Hulu or HBO max subscription).
- Single Portals: 80% of Gen Z wishes there was a single portal or app where they could access all their streaming subscriptions and related content, second only to those between the ages of 26-35 (92%). Doing so could help alleviate the feeling of being overwhelmed by the number of streaming subscriptions available, which was most present among half of Gen Z (50%).
- Open To More Ads: Two-in-five (40%) of Gen Z is open to seeing more ads while streaming in exchange for lower subscriptions costs. That doesn’t mean the rest doesn’t want to see more ads – they’re actually undecided (40%), whereas other generations have a more solid stance.
- Cost Actually Isn’t Everything: Nearly half (40%) of Gen Z is paying between $75-100 for digital subscriptions – a more significant amount than any other generation – but 30% of Gen Z says the rising cost of subscriptions haven’t provided them with a better streaming experience, which they expect in return.
- The Rise Of Gaming: With Netflix expected to announce a new gaming service that allows consumers to play games on the streaming service through their smartphone and/or tablet, nearly one-third (30%) of Gen Z said they’re likely to engage with this new offering.
The full report can be found here.
