Consumers are doubling down on streaming video subscriptions, and 53% of Americans will subscribe to at least two by 2018, according to a recent report by Activate.
By 2020, that percentage will climb to 62%, with 43% opting for two subscriptions and 19% subscribing to three or more. Here are a few takeaways from the study:
- The general population is catching up to early adopters. An October survey conducted by BI Intelligence found that 54% of adults who use a paid streaming video service subscribe to at least two. BI respondents skew toward tech-savvy early adopters, while the Activate survey samples a more diverse pool, suggesting there is a two-year lag between the general population and early adopter subscriptions to multiple video services.
- Netflix is the foundation of bundles. For consumers using only one streaming service, 39% subscribed to Netflix, 20% to Amazon Instant Video and 9% opted for Hulu. Consumers place high value on Netflix as the must-have service, per the survey. Of consumers using Netflix in addition to another service, 75% used Amazon Instant Video and 84% used Hulu. Although dozens of niche video services are available today, only 3-4% of US SVOD users subscribe to a service other than Amazon, Hulu, HBO Now, or Netflix.
- Original content is becoming more important to retain users. In 2016, 45% of survey respondents said that original content was extremely or quite important for keeping a Netflix subscription, an increase of nine percentage points from 2014.
Nearly one-third of consumers in the US and Canada paid $9-$11 per month for subscription-video-on-demand (SVOD) services in Q3 2016, according to Digitalsmith and TiVo’s quarterly video trends report. This is set to increase over the next two years as more consumers opt for multiple streaming services.
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