US SVOD markets adds subscribers as awareness, number of services grow

By Jim O'Neill on Sep 02 2016 at 8:15 AM
US SVOD markets adds subscribers as awareness, number of services grow

The subscription video on-demand (SVOD) industry in the United States is continuing to see strong growth, according to a pair of new reports.

Parks Associates, in the latest iteration of its OTT Video Market Tracker said the industry added 12% more customers since 3Q2014.

Parks said the number of services available, as well as increased consumer awareness, has helped push subscriptions up, even as password sharing continues to increase. The researcher said that password sharing had increased 8% over the same period.

Hulu’s conversion to a subscription-only service and the launch of an ad-free CBS All Access service likely will accelerate that growth.

"We have seen a steady climb thus far in 2016," said Brett Sappington, Senior Director of Research, Parks Associates, adding that OTT video subscription penetration in the U.S. market likely will continue to rise through the end of this year.

Parks also said Netflix, WWE Network and Hulu scored highest in terms of its “Net Promoter Score,” which measures the likelihood of subscribers recommending a product or service to others.

Parks contends that Hulu currently has a higher churn rate than Amazon, but its NPS is much stronger than Amazon's, indicating the retail side of Amazon's Prime service is likely a strong factor than the video service in retaining is subscribers.

Stay tuned.

Follow me on Twitter @JimONeillMedia and on LinkedIn

Posted in: 

READ THESE NEXT

SVOD, Content, Live sports
Original content, sports to push SVOD revenue to $120B by 2022
Dec 13 2017 9:00 AM

New research posits that global revenue from subscription video on-demand (SVOD) will increase 88% to more than $120 billion in 2022, up from an estimated $64 billion this year.

The report from Juniper Research also says more than 25% of all global households will have at least one SVDO subscription in five years.

LatAM, SVOD, Mobile
Latin America seeing golden age of TV in form of SVOD
Aug 22 2017 7:30 AM

Globally, subscription video on-demand (SVOD) is on a rocket trajectory and Latin America is deeply in the mix. While Netflix, Amazon and Hulu have been the leaders of subscription video on-demand growth, an increasing array of subscription services – there are more than 100 in the U.S. and Canada alone – are seeing fast subscriber growth and adoption across demographic groups.

SVOD, Pay TV, Millennials, Cord Cutting
Q2 likely to be miserable as operators brace for big customer losses; OTT anyone?
Jul 24 2017 3:00 PM

Could second quarter pay-TV subscriber losses in the United States top 1 million, the highest figure ever? In a word, yes.

The second quarter routinely is a weak one for operators and in the current environment – remember the first quarter saw more than 800,000 subscribers cut the cord, according to Kagan – reaching one million may be an easy task.

SVOD, Operators, Netflix
Should European operators worry about cord cutting as Amazon, Netflix push deeper into their market? Absolutely
May 25 2017 8:15 AM

When the Big Two come to play in your backyard, it’s time to up your game.

Netflix and Amazon have launched a push into Europe that will likely result in some bad nights of sleep for operators, pay-TV channels and broadcasters looking themselves to do more business over the top.