Stacking builds up as single SVOD service households decline globally | VOD | News | Rapid TV News
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Fewer online households are now subscribing to only one streaming service in 13 of 16 markets according to consumer research from Ampere Analysis.
Ampere SVOD 22Feb2019
In a survey of 33,000 internet users across the 16 countries, more than half (50%) of respondents in 13 of those countries had at least one SVOD service, while in 10 of the 16 markets, more than half of SVOD homes were so-called SVOD stackers, that is taking more than one service. Ampere added that as more major players such as Disney enter the SVOD marketplace in 2019 and beyond, the question is just how many services will consumers pay for?

A key element found about SVOD stacking was that each of the markets analysed had distinct usage trends, For example, France had one of the one of the lowest uptakes of SVOD and Netflix and Amazon held pole positions as French broadcaster-led services struggled to compete, hampered by strict rules and quotas. Yet despite these challenges, stacking was growing: one in three respondents subscribe to more than one service.

By contrast in Germany, SVOD households taking more than one service in Q3 2018, overtook those taking just one for the first time in Ampere survey history and in the Netherlands Netflix adoption in SVOD homes was above 90%. The launch of Amazon Prime delivery has doubled those using the SVOD service, and stacking has increased. One in three SVOD homes take two or more services.

Stacking has reached an all-time high in Spain, and HBO España has quickly become the third-ranked player after Netflix and Amazon Prime. As stacking increases, Spanish operators are increasingly integrating SVOD into their set top boxes, so this behaviour is likely to grow. In Sweden, Netflix was the most popular service, although local players are enjoying consistent growth. By Q3 2018, more than half of SVOD households had more than one subscription.

New direct-to-consumer services such as ITV Hub+ are boosting SVOD stacking in the UK, with ITV Hub+ respondents subscribing to an average of 4.4 services in Q3 2018. 43% of SVOD households are Solos, down from 60% in Q3 2016. In the US, the survey found two and a half times as many SVOD stackers than SVOD Solos. Netflix is practically ubiquitous, appearing in the top three subscription portfolios, with 90% of Hulu subscribers also taking Netflix.

“The growth of SVOD subscribers taking multiple services shows that while Netflix and Amazon dominate many of the markets surveyed, they form the foundation of many stacks, serving as gateway services for consumers who then choose additional subscriptions to curate content,” said Toby Holleran, Senior Analyst at Ampere Analysis. “Niche and broadcaster-led services are capitalising on this trend, with ITV Hub+ in the UK seeing strong growth in 2018 and broadcaster-led services in Sweden, Spain and Italy also on the rise. Disney’s pending US streaming service might find a home in the portfolios of the heaviest of stackers but could find itself having to de-seat other services in the more established SVOD stacks as the US market reaches maturity.”