Some recent marketing research by two separate companies declares that, within the next three years, most U.S. households will have several SVOD subscriptions. Currently, research by Business Insider magazine and Parks Associates of Dallas, found that over 60% of Americans have an OTT subscription with around 31% of those having multiple subscriptions. By next year, research estimates that around 53% will have multiple OTT subscriptions with is rising above 60% by 2020.
Here is just some of the latest marketing research...
- Around 54% of all adults who subscribe to a paid streaming service have at least two of them. Right now, most are paying $7.95 a month on average for services with many paying as much as an average of $29 a month for OTT services.
- Among Americans subscribing to just one SVOD service, Netflix has 39% with Amazon having 20%, followed by Hulu with 9% of overall subscribers. Among subscribers who had more than one, 84% also chose Hulu and 75% chose Amazon Instant Video.
- The movie industry saw consumers spend an average of $9.32 per month buying movie tickets for the cinema. Online TV services and live broadcasts of linear channels will be a common theme in 2017, with several new services scheduled to launch, including options from Hulu and YouTube.
- Original content is the reason most subscribers stay with an OTT service. Nearly half of those surveyed listed it as the primary reason they subscribe to a particular service.
- Content creators and marketers stand to gain from SVOD’s push into the APAC region. Content creators can benefit from the surge in short-form video, while marketers can capitalize on advanced product placements. The best opportunity for continued growth lies in the Asia-Pacific (APAC) region. The region had nearly 42 million SVOD subscribers in 2015, but could have up to 158 million by 2021.
Brett Sappington Parks Asociates' Senior Director of Research said that,
“Consumer willingness to subscribe to multiple services provides the consumer-paid revenues necessary for continued industry growth. There are service stackers willing to experiment with different OTT combinations as new services arise,” Sappington said. “The regular release of high-quality original content, such as The Grand Tour (Amazon) and Gilmore Girls: A Year in the Life (Netflix), ensures the large OTT players will remain a core, consistent subscription among service-stacking households.”
