US SVOD markets adds subscribers as awareness, number of services grow

The subscription video on-demand (SVOD) industry in the United States is continuing to see strong growth, according to a pair of new reports.

Parks Associates, in the latest iteration of its OTT Video Market Tracker said the industry added 12% more customers since 3Q2014.

Parks said the number of services available, as well as increased consumer awareness, has helped push subscriptions up, even as password sharing continues to increase. The researcher said that password sharing had increased 8% over the same period.

Hulu’s conversion to a subscription-only service and the launch of an ad-free CBS All Access service likely will accelerate that growth.

“We have seen a steady climb thus far in 2016,” said Brett Sappington, Senior Director of Research, Parks Associates, adding that OTT video subscription penetration in the U.S. market likely will continue to rise through the end of this year.

Parks also said Netflix, WWE Network and Hulu scored highest in terms of its “Net Promoter Score,” which measures the likelihood of subscribers recommending a product or service to others.

Parks contends that Hulu currently has a higher churn rate than Amazon, but its NPS is much stronger than Amazon’s, indicating the retail side of Amazon’s Prime service is likely a strong factor than the video service in retaining is subscribers.

Stay tuned.

Jim O’Neill is Editor of Videomind and Principal Analyst at Brightcove. You can follow him on Twitter @JimONeillMedia and on LinkedIn