While the majority of consumers in the US view video content from a variety of sources, in both physical and digital formats, the number of people using only Netflix, Hulu, Amazon Prime Video and other SVoD services is on the rise. 17% of the US population relied solely on SVoD services to view video content in the 12 months ending in March 2018, which is up from just 11% in 2017, according to The NPD Group.
24% of consumers rely only on transactional methods — renting and buying videos on physical discs or in digital formats. 32% uses a combination of transactional and subscription video. With an increasing number of subscription video options, consumers continue to expand their monthly services. Among US SVoD consumers in March of this year, 40% subscribed to only one service, 37% subscribed to two services, and 24% subscribed to three or more.
Millennial consumers, aged 25 to 34, were the age demographic most likely to subscribe to three or more streaming video services (42%), but year-on-year growth for this age demographic was flat. Generation Z consumers, aged 18 to 24, who subscribed to three or more services actually declined by 5% year-on-year, while Generation X, aged 45 to 55, grew 3%.
NPD’s Ricardo Solar commented:
“A
s the technology gets older and less novel, as smart TVs become more common, and as more streaming content becomes available, older consumers with more disposable income are coming on board with streaming video services.
Although Millennials were the first to adopt SVoD, GenX and Boomers are now driving the growth among those subscribing to multiple services”.
