SVOD Taking Off in U.S.

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People watching TVSubscription video on demand is becoming more a part of American’s viewing; Over half of American households now have at least one SVOD service.


Nearly 60% of households subscribe to Netflix, Amazon or Hulu — 25% higher than in 2014, according to Leichtman Research Group, which also found nearly half pay for two or more services.

Even households that do have a pay-V service also subscribe to SVODs to the tune of 57%.

Company President and principal analyst Bruce Leichtman writes in a research note Nearly three-quarters (73%) of 18- 34-year-olds stream an SVOD service monthly, as do 53% of 35-54s and 24% of users 55+, according to Ooyala Principal Analyst Jim O’Neill.

Parks Associates backs up the Leichtman findings and adds that more than half of U.S. OTT services relied on a subscription-only business model.

hybrid models that blend SVOD with ad support may be in the catbird seat.

Not only can AVOD models be used to “tease” content libraries, leading to eventual SVOD sign ups, but they also blunt the effect of lost revenue from password sharing, according to O’Neill.

 


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