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  • U.S. Broadband Households With Multiple SVOD Subscriptions Soar in Q3

    U.S. broadband households with multiple SVOD subscriptions soared in Q3 ’20 according to new research from Parks Associates. In its new “The Next Big 3 in OTT” report, Parks found that 61% of U.S. broadband households have two or more SVOD services, compared to 48% a year ago. In Q3 ’20, 45% of these households had three or more SVOD services, up from 27% a year earlier. And 31% subscribed to four or more SVOD services in Q3 ’20, over double the 14% rate a year ago. (Which of these describes your household? Send me a note and let me know).

    Parks notes the changing dynamics of the SVOD market, with the traditional “Big 3” of Netflix, Amazon Prime Video and Hulu seeing challenges from Disney+, HBO Max, Peacock, Apple TV+ and soon Paramount+ which will build on CBS All Access’s foundation. Parks Research Director Steve Nason said in a statement, “Now other services from major players are vying to become a core video service in U.S. households, which represents the first real threat to the hierarchy established by the Big 3.”

    Parks also said the pandemic, which has kept viewers staying at home and watching more TV “further stirs up competition” in the SVOD market. Parks notes that out-of-home entertainment options are limited and household spending is muted by the economic crisis. For now though consumers are adopting multiple SVOD subscriptions at a rapid rate.

    Limited theatrical releases and premium video-on-demand are other factors likely to affect the SVOD hierarchy. Just last week WarnerMedia announced "Wonder Woman 1984" will be available on HBO Max on Christmas Day, the same date it opens in theaters. And Deadline reported that Disney is considering placing several of its high-profile family movies, “Cruella,” “Pinocchio” and “Peter Pan and Wendy” on its Disney+ service, instead of going to theatrical release. These could potentially follow the “Mulan” PVOD model or be included at no extra cost as with “Soul.”

    Parks didn’t weigh in on what impact advertising-supported VOD might have on consumers taking multiple SVOD subscriptions. eMarketer has forecast that AVOD revenue could grow 25% in 2020, as major players like Fox, ViacomCBS, NBCUniversal, Comcast and Roku have all emphasized their respected free, ad-supported services.

    Advertisers are hungry for the premium, brand safe ad inventory AVOD offers, fueling even more ad-supported content. This proliferation of free options has to have an impact on SVOD’s rate of growth at some point.

     
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