SVOD Stacking Direct to Consumer Services Set to Move the Needle
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In the attention economy, everyone is your competitor – a point well made by Netflix’s Reed Hastings’ observation that the company is now vying for viewer time with the popular game Fortnite. Now that we are entering the post-peak phase of the attention economy, the focus for video is shifting to the overlap between subscription video on demand (SVOD) users and the additional services they use. In the early days of streaming, audiences usually had just one video subscription (typically Netflix). Now, however, the long-term effect of exclusive original content strategy is consumers having multiple SVOD subscriptions, or SVOD stacking. With a ream of new direct to consumer services coming to market, SVOD stacking will grow and in turn accelerate the decline in traditional pay-TV spend.
Companies and Products Mentioned: Amazon Music, Amazon Prime Video, Apple Music, Deezer, Disney+, ESPN+, Netflix, Spotify, Warner Media, Comcast, NBCUniversal