A new report from Midia Research suggests subscription streaming apps could be left vulnerable if the global financial markets continue to move towards the recession.
In its Recession Impact report, Midia argues that a recession would lead to consumers having less disposable income, particularly millennials who are currently more willing to pay for their entertainment.
In such a period, Midia argues that millennial entertainment mainstays such as Netflix and Spotify could be some of the first casualties of a recession, facing the prospect of both constricted disposable incomes and free high-quality alternatives.
The report suggests consumers would look towards free AVoD services instead, such as Viacom’s Pluto TV and Sony’s Crackle.
It’s good news for the likes of Amazon and Apple though, as Midia says both offer more to consumers than just content.