GfK: More Multiple SVOD Subscribers Emerge (MESA)
More than 15% of American consumers have more than one SVOD subscription today, up from 10% three years ago, and those “self-bundlers” tend to be more affluent and have kids, according to a new analysis from research firm GfK. Those who subscribe to a combination of Amazon Prime, Netflix, Hulu and other SVOD services are more likely to have children under the age of 18, and have a higher annual income vs. those who don’t (an average annual salary of $90,000 a year, vs. $76,000 for those who don’t have multiple SVOD services.
And those who subscribe to multiple SVOD subscriptions are less likely to have a traditional pay TV service (67%, versus an average of 75%).
“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 for 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.”
About 50% of the viewing population subscribes to at least one SVOD service, GfK found, and 17% have Netflix and Amazon Prime, 9% have Netflix and Hulu Plus, and 5% have all three of the top services. Homes with both Netflix and Hulu (59%) are also less likely to pay for a traditional TV service, compared to those with Netflix and Amazon Prime (67%).