Global consumers consider downsizing digital streaming services: EY Korea

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Digital service providers face increased challenges ahead

By Anna J. Park

The outbreak of the pandemic sparked an increase in the reliance of online activities such as subscriptions to music or video streaming services. Now, amid the current global geopolitical uncertainties and unclear economic outlook, a significant percentage of households around the world are planning to reduce their digital streaming services, as they put more emphasis on value and improving well-being, a global survey showed.

These results published are according to EY's latest report titled, Decoding the Digital Home Study, which surveyed some 20,000 households around the world. The annual report showed about 45 percent of the respondents think that they spend too much money on video content that they don't watch, and 34 percent say that they plan to reduce the number of hours they spend on online activities. Also, 27 percent of the surveyed households say that they are interested in reducing the number of digital streaming platforms they use.

Digital service providers will face complicated new challenges moving forward, as respondents say they have become much more sensitive about both the prices of digital services, amid high inflation, as well as the potentially harmful effects of video streaming content. More than half of consumers are concerned about potential price increases by broadband and TV providers, while 37 percent expressed growing anxiety over online safety and data privacy.

Nearly half ― 40 percent ― of the respondents said their concerns over the use of their personal data have grown, compared to before the pandemic. Also, 47 percent of respondents under the age of 25 said they often think about the negative impacts of internet use on their mental health.

Based on such changed perceptions, global consumers have turned more critical, demanding and value-conscious about digital service providers. Nearly 40 percent of respondents think internet and content service providers are not taking proper action regarding climate change and sustainability issues.

Twenty-one percent of global households with smart home devices, such as smart lighting, smart security systems or AI speakers, also said they plan to reduce the number of smart home devices at home over concerns about hacking and compatibility with other devices.

“The usage of digital services tends to decline in periods of high inflation like now. As consumers plan to unsubscribe from various digital services, internet service providers and content providers should pay heed to improving service quality and long-term value as well as offering tailored services,” Kim Jung-wook, EY Consulting leader, said.