As streaming services raise their prices, card-linked offers can go a long way towards encouraging deal-seeking consumers to hit subscribe, PYMNTS Intelligence indicates.
The PYMNTS Intelligence report “Leveraging Item-Level Receipt Data: How Card-Linked Offers Drive Customer Loyalty,” created in collaboration with Banyan, draws from a census-balanced July survey of more than 2,000 U.S. consumers about their interest in loyalty programs and card-linked offers, as well as what merchants can do to increase awareness and usage of these offers.
The results reveal that, of the 85% of respondents who are likely to use a product-specific card-linked offer program, 54% will likely use them in the next three months to purchase subscriptions for digital streaming products.
As streaming services raise their price, they risk alienating their customers.
For instance, The Walt Disney Co.’s Disney+ streaming service shed 7.4% of its subscribers — roughly 300,000 people — in the fiscal third quarter, amid plans to raise monthly fees and crack down on password sharing.
NBCUniversal’s Peacock, for its part, is taking advantage of consumer demand for card-linked streaming offers. Last month, Mastercard debuted its first streaming subscription offering, offering eligible cardholders a $3 statement credit for subscribing to Peacock’s Premium monthly plan and a $5 statement credit on Premium+.
“We think of Peacock as a consumer-first business, and with the consumer at the heart of Mastercard’s benefits and rewards program, this partnership is a natural fit for both brands,” Annie Luo, executive vice president, global partnerships and strategic development, Peacock, said in a statement.
Meanwhile, over the summer, Bank of America expanded its Customized Cash Rewards credit card to offer the option to get 3% cash back on streaming.
“We are constantly looking for ways to enhance our products to align with our clients’ needs and have observed growing demand for electric vehicle charging and streaming services,” Jason Gaughan, head of consumer credit card products at Bank of America, said in a statement.
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