SVOD Stacking Direct to Consumer Services Set to Move the Needle
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The 20,000 Foot View: 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.
- The rise of streaming services like Disney+ will accelerate the number of households with multiple video subscriptions
- SVOD stackers represent of all SVOD users, rising to of binge viewers
- SVOD stackers represent of pay-tv subscribers, of cord cutters and of cord shavers
- SVOD stackers have a clear Millennial skew: of multiple SVOD subscribers are years old of 20-24-year olds have multiple SVOD subscriptions, making them the most digitally promiscuous age group
- At year olds are the least likely to be SVOD stackers of Netflix subscribers are Spotify subscribers and are Amazon Prime Music subscribers of Amazon Prime Video subscribers are also Netflix subscribers
- Japan at has the highest share of Netflix subscribers with multiple SVOD subscriptions of Amazon Prime Video users are also Amazon Prime Music users; however, use Spotify
- The days of SVOD monogamy are fading, but overall pay-TV average revenue per user (ARPU) could rise
- Amazon sets a model of best practice for how to compete both with and around Netflix
Companies and Products Mentioned: Amazon Music, Amazon Prime Video, Apple Music, Deezer, Disney+, ESPN+, Netflix, Spotify, Warner Media, Comcast, NBCUniversal