Pay-TV subscribers more likely to add SVOD to the mix than cord-nevers | VOD | News | Rapid TV News
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
‘Tis the season for streaming, and research has revealed that pay-TV subscribers are more likely to add a paid online video service, such as Netflix or Hulu Plus, than their non-pay TV equivalents.

RTVN 23 Dec ibb streaming researchAccording to IBB Consulting, the propensity for pay-TV subscribers to already own such subscription video-on-demand (SVOD) services, and likeliness of existing subscribers wanting to add a new service, is something that both entrants and incumbents should consider when designing services. Nearly 45% of online consumers are willing to spend on additional video services. 38% of respondents search out services that offer content in the genres that are of most interest to them.

“With 55% of consumers not yet indicating near-term spending on new streaming services, we expect there to be a continued growing opportunity for ad-supported video offerings, in addition to the opportunity for paid services,” said Jonathan Weitz, a partner at IBB and author of the report. “Further, there is room in the market for additional SVOD and AVOD entrants that cater to specific tastes.”

Four out of five respondents use five or fewer different apps to watch video, and 20% of respondents represent a class of “super streamers” who are using six or more paid and free video apps. According to respondents, Facebook is the third most popular place to stream video, behind YouTube and Netflix.

"Millennial viewership is fragmented, but this fragmentation disproportionately favours large digital video platforms, whereas older demographic viewing is more likely to happen across both new and traditional platforms,” said Weitz. “This represents a unique market opportunity."

He added: “Social media is often discussed in the context of the value of friend recommendations. But considering that ads on social media ranked similarly to ‘people I know’ when it comes to discovery, there appears to be more opportunity to enhance the marketing mix, including TV ads and email, used to drive subscriber acquisition and loyalty for these new services.”

The research also found that most respondents say they prefer bundles to á-la-carte packages, and, cable VOD consumption is relatively in line with other popular options. One big differentiator for pay-TV could be search and content discovery.

Bundling services in a variety of ways may make it easier to promote them to viewers, and easier for viewers to browse and discover new viewing options,” Weitz said. “When choosing a service, a considerable number of respondents say they consider how easy it is to search and find what they’re looking for. Every streaming service should take note of the high importance that a considerable percentage of consumers place on search, discovery and recommendations. This is especially true as new entrants come to market and consumers begin to look beyond content when making decisions.”