Hulu Subscribers Prefer Subscription VOD to Legacy Pay TV

A recent survey by TDG Research shows that over 67% of Hulu subscribers, if asked to choose, would elect to keep their subscription-based streaming services over more traditional pay TV options.

Choosing between traditional pay TV and SVOD USA

The Netflix users surveyed also preferred VOD, but by a much smaller margin. Overall, pay TV still came out on top with over 57% of the vote from all dual-service users, but the stark contrast of the Hulu result came as a surprise to analysts.

TDG President and Principal Analyst, Michael Greeson, said,

“This variance was a bit unexpected. One would be forgiven for thinking that Netflix dual-service users would be the segment most likely to stick with their streaming services. Given the reach of the service (nearly 100 million viewers versus Hulu’s 47 million) and the relative strength of the Netflix brand, it is not unreasonable to assume that the bond between Netflix and its subscribers would lead to higher numbers.

Keep in mind that Hulu is a very different service than Netflix or Amazon Prime, with broadcast and cable TV shows front and center in its offerings with movies playing a secondary role. This makes it a better substitute for live legacy pay-TV than Netflix or Amazon Prime.”

The report goes on to say that the brand loyalty demonstrated by the Hulu subscribers that took part in the survey could prove lucrative for the company in helping to convert VOD users over to its Hulu Live TV service that launched earlier this year.