Some 69% of all US households that subscribe to a “Big Three” subscription video on-demand (SVOD) services, now are taking multiple SVOD services, a new study has found. That’s good news for new SVOD services poised to launch before the end of the year and a clear sign that consumers are steadily becoming more at home with over-the-top delivery of their video entertainment.
The number of multi-SVOD homes is rising quickly. It’s up 245% since 2015, when only one-in-five HH had an SVOD service in addition to Netflix, Amazon or Hulu, and 109% since 2017 when just one-third of HHs had more than a single subscription.
Growth in multiple SVOD services tied to Big Three
Meanwhile, an all-time high (74%) number of households (HH) subscribe to at least one or more of the Big Three services – Netflix, Amazon or Hulu – the survey from Leichtman Research Group, its 13th annual edition of its study, Emerging Video Services, found. That’s up from 64% in 2017 and 52% in 2015.
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Netflix continues to draw the most viewers in the US, with eMarketer estimating there are 158.8 million people who watch the service, about 87% of all SVOD users in the US. Amazon video, meanwhile, draws about 96.5 million viewers and Hulu about 75.8 million.
eMarketer expects the number of Netflix viewers to continue to grow, with its total viewership reaching at least 177.5 million by 2023.
More findings from LRG
The survey also found that as SVOD continues to move into the mainstream in the US, streaming’s demographic reach also continues to expand. LRG said 51% of adults18-34 stream daily, followed by 34% of 35-54s and 15% of consumers 55+.
Devices other than TVs also continue to gain ground, with more than half (51%) of respondents say they watch video on devices other than TV sets, including mobile phones, tablets, eReaders and computers.
Other related data from the survey include:
- 64% of all adults stream an SVOD service at least monthly, and 41% stream more than one SVOD service at least monthly
- 33% of adults stream an SVOD service daily – compared to 29% in 2017, and 16% in 2015
- 27% with Netflix agree that their subscription is shared with others outside their household – compared to 19% with Hulu, and 10% with Amazon Prime
The bottom line
Close to three-quarters of all US HH subscribe to one of the major OTT video providers, a number that has continued to grow. And, despite a fair share of Chicken Littles running around, the SVOD sky is not falling and saturation of the market is a long way off. There’s plenty of room for growth as viewers change their habits and continue to trend away from traditional pay-TV services.
Consumers’ desire to build their own bundles, paying for multiple SVOD services, is something that will benefit regional broadcasters and providers of niche video as consumers shop the market for the content they want.
While Disney and Apple may see big growth as add-on services, there will still be plenty of room for smaller, more specialized providers.
And, those specialized SVOD services may be able to worry less about password sharing since the bigger ticket items – like Netflix and sports services – likely will be a more appealing target.