In the U.S, 17% Get Video Solely From SVOD Services, Finds NPD
The number of people who get their video only from subscription video-on-demand (SVOD) services is on the rise. According to data from market research company The NPD Group, 17 percent of U.S. consumers relied solely on SVOD services in the past 12 months. That's up from 11 percent in 2017.
While young adults are more likely to stream video, that area seems to be plateauing. NPD finds that adults age 25 to 34 are the most likely to subscribe to 3 or more streaming services, with 42 percent doing so, but that figure hasn't changed much in the past year. In fact, young adults (age 18 to 24) are less likely to subscribe to 3 or more services, with their total dropping by 5 percentage points. While usage may have topped out for young adults, older adults are subscribing at a slightly higher rate.
“As the technology gets older and less novel, as smart TVs become more common, and as more streaming content becomes available, older consumers with more disposable income are coming on board with streaming video services,” notes Ricardo Solar, president of media entertainment for NPD. “Although Millennials were the first to adopt SVOD, Gen X and Boomers are now driving the growth among those subscribing to multiple services.”
NPD also found that 32 percent of adults use both transactional and subscription video services, while 24 percent use only transactional services, preferring to rent or buy their entertainment.
As the streaming video market gets more crowded, consumers get more confused. Look for aggregation services to grow in importance, with Apple and Amazon taking the lead.
Netflix will remain the market leader in the near future, but Rethink Technology Research sees the SVOD leader's market share diminishing.
The average SVOD subscriber takes 2.03 accounts. That will grow to 2.35 accounts in 2023, Digital TV Research forecasts.
SVOD isn't the only game in town. Many people rent or purchase movies or TV shows, and that audience likes physical video discs.