64% of Adults Use an SVOD Service, Up 8% From the Previous Year
Subscription video-on-demand (SVOD) viewing is increasing at a fast rate, with 63.8 percent of adults now using a service. That shows an increase of 8.4 percent from the previous year.
That data comes from TiVo's Q4 2017 pay TV and online video trend report, which used a third-party company to survey 3,079 adults 18 and over in the U.S. and Canada.
The most popular SVOD is Netflix with 52.8 percent of those surveyed, followed by Amazon Prime with 26.3 percent and Hulu with 11.8 percent.
People are overwhelmingly happy with their SVOD's selection: 92.5 percent watch SVOD content daily, a year-over-year increase of 2.3 percent, and they're watching more content on a daily basis than they did previous year. Also, 81.2 percent are happy with their ability to find SVOD content they want to watch, showing a slight year-over-year improvement.
The majority of SVOD subscribers (55.6 percent) pay between $6 and $14 per month. But many would like more of a deal: 68.0 percent said if Netflix or Hulu offered a free tier with commercials, they would consider using it. This number shows a slight decrease from the previous quarter. Of the 32.0 percent who wouldn't consider a free commercial-sponsored tier, 85.1 percent don't even want commercials targeted to their interests.
While no pay TV service currently offers it, interest in a la carte channel selection is still strong: 76.6 percent would like it, up 3.0 percent from the previous year. The ideal plan would offer 18 channels and go for $25.82 per month. The most popular channels would be ABC, Discovery Channel, CBS, History, and NBC, in that order.
Download "Q4 2016 Video Trends Report" for more (registration required).
The average SVOD subscriber takes 2.03 accounts. That will grow to 2.35 accounts in 2023, Digital TV Research forecasts.
Amazon Prime Instant Video's expansion and the introduction of BritBox drive home the point: SVOD will be the leading OTT business model for the foreseeable future.
Will pay TV providers finally offer a la cart selection in 2017? PwC say it would win back dissatisfied cord-cutters and cord-nevers.
While video streaming issues are a major hassle for subscription video customers, it's the ads and high costs that are more likely to drive them away, finds IBM.