This is the conclusion drawn from Deloitte’s recent Digital Consumer Trends study, which examines digital consumer behavior patterns.

Amidst the global inflation crisis and consequent spending cuts on leisure activities, a reshuffling among various streaming platforms is evident. A significant portion of Hungarian consumers also expects an increase in their telecommunications costs.

Steady State in Streaming Subscriptions

The landscape of paid streaming services has remained relatively stable over the past couple of years. In 2022, 51% of users maintained their subscription habits, with a slight decrease to 46% in 2023. Consistently, 24% opted for new subscriptions each year. Interestingly, there was an uptick in people resubscribing to services they had previously used: from 6% in 2022 to 9% in 2023.

Miklós Zaránd, a partner in Deloitte Hungary‘s technology consulting division, highlights some concerns: “Even though the number of subscribers who changed their habits was lower compared to the previous year, there was an increase in cancellations in 2023 compared to 2022. 8% of respondents paused their subscriptions with the intention to return, while another 7% terminated their services permanently.”

Diverse Usage Patterns in Streaming

A vast majority, 82%, of users engage with free streaming platforms. Paid video streaming is the second most popular choice, used by over half of the respondents, 52%. Paid music streaming services are chosen by about a third, 34%, of users. Interestingly, 42% do not use any paid streaming service, and a mere 16% abstain from all free streaming services.

Subscription Cancellations: Underutilization Leads the Way

The most common reason for subscription cancellation in the past year has been underutilization, with 37% citing this in 2022, dropping to 31% in 2023. The secondary cause is decreased spending due to rising costs in other areas, though its frequency has declined from a quarter of respondents in 2022 to less than a fifth, 19%, in 2023.

Csilla Gercsák, manager at Deloitte Hungary‘s technology consulting division, points out a shift in consumer sentiment: “There’s an increasing trend among those cancelling their subscriptions due to cost concerns. This sentiment was shared by 16% last year, with higher rates among younger users.

For the 45-55 age group, not finding appealing content or having already watched their preferred shows were also reasons for cancellation. Additionally, the number of people who chose not to subscribe after a free trial, as well as those feeling overwhelmed by multiple subscriptions, has risen. This could present a new challenge for service providers.”

Spending Patterns: A Mixed Picture

Over the past year, entertainment expenditures have seen the most significant decline, with 30% of respondents reducing their spending in this area. On the flip side, 10% reported a substantial increase, while 19% experienced a moderate rise in such expenses.

Ádám Takács, an advisor at Deloitte Hungary‘s technology consulting division, comments on the evolving telecom landscape: “Only 8% of users saw a decrease in their home broadband internet expenses, whereas 46% witnessed an increase. Mobile expenses decreased for 12% but rose for 40% of the users.

TV subscription costs increased for 31%, with only 15% reporting a decrease. Interestingly, spending on technological devices varied widely: 34% experienced a rise, whereas 22% enjoyed a reduction.”

Future Outlook: Navigating Economic Challenges

As Hungarians navigate the economic landscape, there’s a general anticipation of rising costs in various sectors. This includes expectations of increased expenses in mobile and broadband internet services, as well as technology device expenditures.

This sentiment reflects the broader challenges faced by consumers in adapting to the evolving economic conditions.

Source: budapestreporter.com - republished with permission

*********************************************************************************
You're very welcome to comment, discuss and enjoy more stories, via our Facebook page: 
Facebook.com/XpatLoopNews + via XpatLoop’s groups: Budapest Expats / Expats Hungary

You can subscribe to our newsletter here:
XpatLoop.com/Newsletters

Do you want your business to reach tens of thousands of potential high-value expat customers?
Then just contact us here!