SVOD becomes primary digital delivery model | OTT | News | Rapid TV News
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Streaming subscriptions have become the dominant model for accessing TV online according to Hub Research.

hubThe survey found subscription video-on-demand (SVOD) has outstripped ad-supported aggregators (eg, watching shows for free on Hulu), TV everywhere and transactional services like iTunes.

In 2015, almost half (47%) subscribed to an online streaming service. That number is now 68%, up 21 points in just one year. Netflix is still the dominant player, with by far the most subscribers, and up significantly from last year. But Amazon and Hulu are growing even faster (up 59% and 60% from last year, respectively).

The study also revealed a greater use of multiple SVOD services: 37% of consumers have two or more SVOD subscriptions, double the percentage in 2015 (19%). Consistent with this general increase in SVOD subscription, Netflix in particular is now considered an even stronger value than services that allow consumers to watch TV content for free.

“Consumers have accepted the idea that online TV services are worth paying for on a monthly basis,” said Peter Fondulas, principal at Hub and one of the authors of the study. “These findings show that subscription services like Netflix and Amazon are attracting more and more viewers with a combination of attractive features: deep catalogue, growing numbers of original series, an intuitive interface and a transparent log-in process.”

Netflix’s value perception is high: 67% of all TV consumers say that Netflix offers excellent or good value as a service. Even the free version of Hulu doesn’t match up: 61% of consumers consider watching shows on the free, ad-supported version of Hulu to be an excellent or good value, six points behind Netflix.

“Many in the industry have said that the appetite for TV content is enough to support lots of providers, and these findings suggest that they’re correct,” said Jon Giegengack, an analyst at Hub. “The all you can eat model of SVOD platforms is emerging as a clear favourite. And the fact that most SVOD subscribers use more than one SVOD platform is a telling development.”

The news comes as the Digital Entertainment Group reported that total US home entertainment spending was nearly $4.6 billion for the first quarter of 2016, flat over the same period 2015 and outpacing the box office value on video release by nearly 10 percentage points.

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