NEW YORK--(BUSINESS WIRE)--For today’s voracious video viewers, accustomed to on-demand access to pretty much anything, one streaming video service simply may not be enough. New GfK research in the US has found that 16% of the viewing population* have multiple SVOD (subscription video-on-demand) services in their homes, up from 10% three years ago.
Click here to view an infographic from this study.
The new report from GfK’s The Home Technology Monitor™ shows that these “self-bundling” viewers – those who pay for combinations of Netflix, Amazon Prime, Hulu, and other subscription streaming services – are more likely to have kids under 18 in their homes (50%, versus an average of 41% among all weekly viewers of any type).
“Self-bundlers” also have higher mean incomes than average weekly viewers – at $90,000 per year versus $76,000 – but are less likely to subscribe to traditional pay TV services (67% versus an average of 75%).
The implications for content creators and brands alike are striking. Marketers want access to high-income households with very young consumers – who often influence their parents’ purchase decisions – but may have less access through standard channels (such as pay TV) if they self-bundle.
Overall, GfK measured subscribing to 16 for-pay over-the-top (OTT) streaming video services, with consumers who pay for any two or more considered to be “self-bundling.” Roughly half (49%) of the viewing population subscribes to at least one of these services; almost two in ten (17%) have Netflix and Amazon Prime; 9% have Netflix and Hulu Plus; and 5% have all three of the major services.
Specific combinations of subscription streaming services are associated with different effects; for example, households with Netflix and Hulu (59%) are less likely to have pay TV service than those with Netflix and Amazon Prime (67%).
“As consumers start to self-bundle, the potential impact of increasing subscriber fees for each streaming service will be compounded,” said David Tice, SVP of Media and Entertainment at GfK. “The last one to a price increase party may be the first one cancelled – so individual streaming services need to consider competitor plans before instituting price hikes. There may also be a place in the market for a third-party aggregator of discounted streaming services.”
GfK’s report, “Over-the-Top TV 2016: A Complete Video Landscape,” is based on interviews with 1,054 consumers on GfK’s KnowledgePanel®, which combines the capabilities of web-based interviewing with robust probability-based samples. This is the seventh annual wave of this report, which includes:
- trends in ownership and use of two dozen devices that can be used to watch or deliver video content;
- use of content distributors like DVD rental kiosks, iTunes, EST, and SVOD services; and
- deep dive usage characteristics of the three major US SVOD services.
* The “viewing population” includes all those who watch any video at least once per week via any means – regular TV, streaming, or otherwise. This is 95% of the total 13-to-64 US population.
GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter decisions. More than 13,000 market research experts combine their passion with GfK’s long-standing data science experience. This allows GfK to deliver vital global insights matched with local market intelligence from more than 100 countries. By using innovative technologies and data sciences, GfK turns big data into smart data, enabling its clients to improve their competitive edge and enrich consumers’ experiences and choices.