Would a price increase cause you to a drop a streaming service?

As South Africa navigates a tough economic climate, would a price increase cause you to drop a streaming service?

According to recent findings from Statista’s Global Consumer Survey, two-thirds of US adults said they would cut back on subscriptions to save money in times of high inflation, and price increases could do their part in forcing people’s hands.

Streaming services has grown to greater heights in South Africa.

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Competitors like Netflix, Disney and Paramount have managed to find a market on our shores and grow their global subscribers.

These are some of the streaming service in South Africa

• Netflix: From R49 to R199 a month

• Showmax: From R39 a month

• Disney+: R119 a month

• Britbox: R99 a month

• Apple TV+ R84.99 a month

• Amazon Prime / Prime video. R79 a month

• eVOD: Free

• VIU: Free with ads / R69 premium

Rising inflation and the decision by the South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) to increase the repurchase rate (repo rate) by 75 basis points have put consumers under immense pressure.

And economists have warned that further pain is on the way, meaning further belt-tightening will be required.

However, when it comes to streaming, South Africans actually spent more on streaming services compared to their American counterparts.

In July, an assessment of consumer behaviour from before the Covid-19 period up to June 2022, revealed that FNB retail customers have increased their spend on entertainment streaming services by about 70%.

The bank noted that streaming services like Spotify, Netflix, Apple iTunes, Google Music, Deezer, ShowMax and YouTube have collected up to R190 million a month from FNB customers during the period.

Earlier this month, a new poll by Ipsos revealed consumers’ ability to pay their energy bills is a top concern in emerging markets, particularly for 79% of South Africans.

The Ipsos survey, which spans 28 countries, showed there is significant public concern surrounding the payment of basic services.

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