The average number of streaming services bundled by consumers grew from five in April to seven in the second half of October, according to NPD Group research about average SVOD subscriptions per customer.
The NPD Group’s Connected Intelligence TV Service Switching Study found that people are looking for entertainment as they spend more time at home due to the COVID-19 pandemic. People also have more higher-quality services from which to choose.
The firm said that exclusive content is the primary reason, cited by 25% of respondents, for engaging with SVOD streaming services. Exclusive content is also is a key reason for switching services.
Twenty-one percent of SVOD users in the October survey have canceled some of their subscription services or engaged with them less heavily because of competitive content. In the April survey, only 14% said they had done that.
NPD said that the percentage of respondents using free streaming grew from 39% in April to 47% in October. The press release noted, however, that the April data included past year free streaming users, while October data included past six month users.
“By and large, consumers want the ability to customize their viewing experience, bundling both paid and free services that provide them with the content they want, when they want it,” John Buffone, the Executive Director, Industry Analyst within NPD’s Connected Intelligence practice, said in a press release.
The survey about streaming services, which was in the field from October 14 to 22, is based on online responses from more than 5,000 consumers in the U.S.
The increase streaming services also likely is due to their use as a marketing tool. Earlier this month, Verizon said that it will offer discovery+ free for a year for subscribers to the company’s 5G Ultra Wideband mobile, 5G Home Internet and Fios services.
Clearly, the market is heating up as more people are watching, more targeted content is being produced and people become more amenable to moving from traditional linear approaches. In November, Parks Associates said that while the top three over-the-top video players – Netflix, Amazon Prime Video and Hulu – remain in place, the remaining spots in the top ten are becoming more competitive.
