Average streaming services bundled by US viewers rises to seven | Media Analysis | Business
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With Covid-19 driving an accelerated transition of viewing from traditional channels to free and subscription streaming video services, US consumers that use streaming to view content now use seven services including subscription video-on-demand (SVOD) services and free streaming video services, up from five in April 2020, says research from The NPD Group.
Netflix English Multiple Device 17July2020
According to the TV Switching Study – tracking changes in the way US consumers view and buy digital content though an online survey of more than 5,000 US consumers from 14-22 October - access to exclusive content is a primary reason cited for engaging SVOD services, driving over 25% of engagement, while also resulting in a consumer’s desire to switch services. An increasing number of SVOD users – 21% in October 2020 compared with 14% in April – are decreasing engagement or cancelling subscriptions because they feel other services offer better content.

The report also found that free streaming services saw growth from 39% of viewers in April to 47% in October as consumers used such offerings to supplement SVOD services. While nearly all free streaming services experienced lower churn than average, as consumers did not have to subscribe to these platforms, they also experienced lower engagement rates. This said NPD meant these services must differentiate their content array or risk declining user engagement.

“By and large, consumers want the ability to customise their viewing experience, bundling both paid and free services that provide them with the content they want, when they want it,” said John Buffone, executive director, industry analyst within NPD’s Connected Intelligence practice.

“Amidst Covid-related content production challenges, viewers are increasing the number of streaming services they use, as they seek to find content that captures their interest. Competition will become an even greater challenge for services. Both now, as viewers try more options and later as production ramps up and each service gets new programming.”