19% of Video Streamers Pay for 3 or More Services: 451 Research
It's starting to look like the over-the-top (OTT) video market is a buffet in which Americans can't decide on just one entrée. According to the latest quarterly Voice of the Connected User Landscape survey from 451 Research, 19 percent of consumers who stream video pay for 3 or more services. That percentage shows a year-over-year (yoy) increase of 4 points. In effect, 451 Research concludes, consumers are creating their own tailored bundles by combining video on-demand and a la carte services.
Among those who pay for a streaming service, 79 percent have a Netflix subscription, while 53 percent have Amazon Prime. Amazon shows a strong 5 percent yoy increase.
Those surveyed cite access to movies (50 percent) as a stronger draw than access to TV shows (45 percent), although the numbers are close and the popularity of TV shows grew by 6 percentage points in the last two quarters. While original streaming series dominate water cooler conversations, only 33 percent subscribe for a service's originals—however, this number grew by 8 points over the last year. The online services have invested billions in creating original movies and shows to differentiate themselves, and 451 Research finds the strategy is working.
The survey also looked at the devices people use to stream video, finding that Roku boxes are used by 31 percent of those questioned and Roku sticks by 10 percent. Additionally, 35 percent use an Apple TV while 26 percent have a Google Chromecast.
"Looking ahead, we’re beginning to see some real-world examples of streaming and traditional TV blending together," notes Andy Golub, managing director of 451 Research's survey's and research. "Comcast’s recent integration of Netflix into its X1 set-top boxes is a major step in embracing the growing trend towards streaming. If other TV providers follow suit, it would be a game changer for the industry."
451 Research's data comes from a December 2016 survey of 1,270 people in North America.
Thanks to low cost solutions, such as Brightcove's template-based OTT Flow, smaller media companies are creating their own niche SVOD offerings
"Service stacking," where households sign up for more than one over-the-top video service, is about to become the new normal.
The days of traditional TV are over as consumers rush to cut the cord, right? Not so fast: We're seeing a migration, but the product and players haven't changed.