Service fatigue not an issue as consumers keep stacking shows | VOD | News | Rapid TV News
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More than half of all SVOD users who subscribe to three or more services will purchase additional services this year, according to research from Futuresource.
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The analyst’s Living with Digital consumer research report, running for nearly ten years, was based on more than 12,000 consumer interviews carried out with nationally representative samples. Surveys were conducted in December 2019 in the USA, UK, Germany, France, Italy and Spain.

The research found continued momentum behind SVOD service uptake, with consumer appeal strengthening and sustained adoption of Netflix and Amazon Prime, bolstered by a wider trend for multiple SVOD services, service stacking, which was becoming commonplace across many countries worldwide. In the USA, more than 80% of SVOD households were stacking at least two services.

Those consumers who service stack were also much more likely to show strong positive behaviours relating to wider digital video consumption. Those with three or more SVOD services were twice as likely to subscribe to another SVOD service within the next year than those who currently only subscribe to one service.

They were also much more likely to spend at least 10 hours per week watching Netflix, as well as more likely to want to build a digital film collection comprising sell-through titles.

Futuresource also found that the highly popular Disney+ was also helping to drive the uptake, although the research suggested the intention to subscribe is lower in European countries ahead of launch than it was in the USA. However, it noted that the inclusion of Frozen II and the potential unexpected uplift from coronavirus could see the Disney+ launch boost service stacking in Europe more than previously anticipated.

“With attention-grabbing launches from the likes of Disney+, our research points to a future where subscriptions and consumer spend are pushed to new heights,” said Futuresource Consulting principal analyst David Sidebottom.

“In addition to the strong intent to sign up to new services in 2020, approximately 70% of SVOD subscribers say they will keep subscribing to their SVOD services without cancelling in 2020, providing a strong bedrock for sector growth. However, in leading markets, churn on Netflix has increased in 2019 compared to 2017, now around one-third of Netflix subscribers say they have dipped in and out of Netflix over a 12-month period. This highlights the continued importance of churn management in an increasingly competitive industry.”