The “streaming war” is now in full swing, but so far the competition has risen to take over all the boats – the subscription-video service has grown across the board during the coronavirus. Now the question is whether it will stick mostly, or if the wave of SVOD cancellations is coming in the next few months.
The new JD Power survey found that Americans now subscribe to an average of four streaming services, compared to three at the start of the CVDID epidemic. And they’re shelling out 24% more to fix on-demand: U.S. customers spend an average of 47 47 per month on video subscription services in December 2020, up from 38 38 in April.
It encouraged the arrival of new streamers like HBO Max and Peacock, players like Netflix (203.7 million subs by the end of the year, 22% more year after year) and Disney Plus (about ৮ 87 million in the first year). Contrary to the background of home quarantines due to being closed in public places for – the victims are of course the pay-TV providers, which have continued to be customers.
About 49% of respondents to the JD Power survey said their families now subscribe to four or more streaming services. In April, this number was 39%. In fact, 13% said they use seven or more services (8% by April 2020).
Once the lockdown is lifted and “streaming fatigue” is set, a sector shakeout may increase.
“When we emerge from this epidemic and people have less time to sit at home and receive content, it will be interesting to see how Moffatnathson analysts, led by Michael Nathanson, see the reasons for regular use in streamers’ decisions to subscribe to some of these services,” SVOD wrote in the track report.
Note that Moffatnathanson’s study found lower-average family SVOD penetration than JD Power’s. Per Moffatnatson, whose survey was conducted with HarrisX, said that by the end of 2020, the average pay-TV family member in the United States subscribed to an average of 33.33 SVOD services, while two non-pay-TV subscribers subscribed on average.
About 61% of respondents to JD Power’s survey said they subscribed to Netflix, the No. 1 streamer. Amazon Prime Video came in second with 5%, followed by Hulu at 56%, Disney Plus at 4%, HBO Max at 22%, Peacock at 16%, and Apple TV Plus at 14%.
Meanwhile, JD Power’s survey found that Disney Plus’ most-watched TV show “The Mandalarian” in December 2020 helped increase Disney Plus user time on the platform, increasing from 4.6 hours per week in April to 5.0 hours per week. Among the survey services for the week in December, Netflix has seen the most declines since spring, dropping from 10.2 hours a week to 9.5 hours.
The JD Power TMT Insights Survey was conducted in the United States on December 1-19-1, 2020. The margin of error for the results of the survey is +/- 2% with a 90% confidence interval, the researchers said. A copy of the study is available at this link.