COMMENTARY

Consumers Cutting Entertainment Costs? Live Experiences Still A Good Bet

• by Wayne Friedman , Staff Writer, Yesterday

Consumers want to cut some entertainment costs -- in theory. 

Polls might suggest consumers to do the right thing when it comes to their home finances.

But will they really make the call to opt out? Maybe here and there.

The good news -- in part -- is that streaming platforms aren’t the highest on the list -- cutting broadband and internet spend is.

According to a Morning Consult poll, 62% of U.S. adults say “it's important to spend less within the next 12 months” when it comes to broadband and internet monthly outlays. Right behind this comes consumers' mobile phone plans, at 61%. 

This would make sense. Mobile and broadband are typically packaged together and that number can be anywhere from $120 to $200 a month, depending on the added products.

Increasing those added products/services are TV/video streaming services. But not always.

Video streaming subscriptions are at 51% for consumers to cut those costs, while cable/satellite TV subscription is just under that mark -- 49%.

Consumers can closely identify and associate with their important “entertainment” movie studio/TV network brands. Few really want to cut back in those areas, since for many they represent recreation, relaxation and fun.

But attaching consumers to a specific broadband/mobile brand? Perhaps that isn’t so much of a thing -- with Verizon, T-Mobile, Spectrum, AT&T, or another brand.

The survey was conducted on March 2 through 4th of this year, among 2,203 U.S. adults.

Of course, streaming/video monthly costs may look somewhat different to consumers now that they are buying around five services a month -- which can be perhaps total $50 to $65 or so, depending on the streaming options they want.

Other potential areas that might take a hit include music streaming (45%); books (42%), concert tickets (40%) and movie tickets (40%). The last two seem to be those In Real Life (IRL) entertainment areas consumers still want an attachment to -- not just to artists but to other consumers and live experiences

So what are those seemingly untouchable expenses to cut? Seemingly video gaming subscriptions and video game purchases -- 34% each.

But the entertainment area they want to most avoid is sports betting, at 30%.  And a related area at 35% is sporting event tickets. 

What can one learn from this, generally speaking?

It seems that when the excitement level rises a bit, the still "cool" medium of TV and video has nothing on the "hot" and infinitely more entertaining experience of being there.

Perhaps the "virtual/at home" entertainment world will soon need a facelift. Place a bet on the "over."