Hub Intel Deep Dive: Who’s Keeping the TV Industry Afloat? Meet the Heavy TV Spenders
What you need to know about the viewers spending $100+ per month on TV. Plus, an exclusive new offering for our paid subscribers!
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Hub Intel Deep Dive: Meet the Heavy TV Spenders
Over the past decade, the most monumental shift in the media industry has been the inexorable decline in households with multichannel TV subscriptions. Viewers searching for ways to save on their monthly TV bills have driven cord-cutting, an increase in SVOD subscriptions, and the growth of vMVPDs and FASTs.
But despite consumers' constant efforts to reduce what they spend on TV, over the past few years Hub’s continuously fielded TV Churn Tracker has shown a consistent three in ten households report spending $100 or more on TV each month. While inflation is partly responsible, our research also reveals that the proportion of viewers with six or more monthly TV subscriptions has remained steady over the past two years.
So, who are these viewers driving revenue in the video marketplace? Here are five key insights about this critically important group:
1. They’re White, Older, and Have Kids at Home
Heavier TV spenders are more likely to be white, older, and—perhaps most surprisingly—to have kids in their households. While older households typically have fewer kids, heavier TV spenders buck this trend. They are significantly more likely to have children at home, which aligns with a pattern we’ve observed over the years: families with kids have more subscriptions. And why not? Even at $100+ per month, TV remains a cost-effective entertainment option for families.
Table 1 displays demographic differences between heavy TV spenders and all other viewers
2. More Subscriptions, but Not Indiscriminate Spending
No surprise here: heavier TV spenders have more TV subscriptions. However, they’re not throwing money around without consideration. These viewers are more likely to have an MVPD subscription and boast more than double the subscription rate for vMVPDs. Their high vMVPD adoption rates suggest that even these higher spenders are seeking lower-priced alternatives when possible.
Table 2 displays differences between heavy TV spenders and all other viewers on TV usage
3. Swapping Subscriptions but Adding More Overall
Heavier TV spenders might swap subscriptions in and out, but they’re net adders overall. In a typical month, high spenders are twice as likely to only add a subscription than to only cancel one and nearly three times as many add two or more subscriptions as cancel two or more. What drives these decisions? Exclusive content. Heavier spenders are more likely to be motivated by exclusive movies or shows when adding a service. Conversely, when canceling, it’s often because the one show they were watching has ended.
Table 3 displays differences heavy TV spenders and all other viewers on adding and canceling TV subscriptions (past 30 days)
4. Ad-Free Services? Yes, but Ads Are Still Part of Their Viewing
Heavier spenders are more likely to opt for ad-free versions of SVODs, but with so many services, they still see plenty of ads. By mixing ad-free and ad-supported content, these viewers balance premium ad-free experiences with the broader variety offered by ad-supported services.
Table 4 displays differences between heavy TV spenders and all other viewers on reasons for adding a TV service (past 30 days)
5. Exclusive Content Is Key to Keeping Them
For these viewers, video subscriptions deliver value, especially in households with kids. But the secret to retaining them lies in exclusive content. Heavy spenders are willing to pay a premium for ad-free services, but keeping them requires content they can’t get elsewhere. This means touting exclusives—be it must-watch movies or shows—to stay indispensable.
Table 5 displays differences between heavy TV spenders and all other viewers on ad-free services subscribed*
The Takeaway
On the surface, heavier TV spenders might look like frequent subscription swappers: male, upscale, tech-savvy. But in reality, they’re more likely to add than drop services in a given month. For these high-value viewers, TV subscriptions offer unmatched entertainment value, and providers should prioritize delivering exclusive, premium content to retain their loyalty.
As in any industry, pay attention to your best customers—because these heavy spenders are keeping the TV world afloat.
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Hub Entertainment Research tracks how technology is changing the way people find, choose, and consume entertainment content: from TV and movies, to gaming, music, podcasts and social video. Working with the largest networks, pay TV operators, streaming providers, and studios, Hub’s studies have covered the most important trends in providers, devices, and technologies since 2013.
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