We have our choice of subscription-based video streaming services available, everything from Netflix and Amazon Prime to less popular offerings like VUDU. These services are usually inexpensive and can be watched on many devices, ranging from our smartphones to televisions. So it should be no surprise that according to an NPD Group report, the popularity of these services is affecting subscription television networks: causing a 6-percent drop in two years.
“SVOD” or Subscription Video On Demand services have seen a 4-percent increase in households in the United States, while at the same time premium television networks like HBO and Showtime, have seen a larger 6-percent drop. Last year, as of August, 27-percent of households in the United States subscribed to some SVOD services, while 32-percent subscribed to premium television channels.
Obviously Netflix is the dominant SVOD in the market, with Amazon Prime and Hulu Plus also being big players. Since 2012, NPD says that the overall digital-video transaction picture saw a rise of 3-percentage points, covering a span of 70-percent of home video transactions last year.
Premium-TV subscriptions will continue to lose traction I’m sure, but it will be interesting to see how it all plays out.