Video Streaming & Consumer Trends

Viewer Streaming Adoption

• Streaming subscriptions rose 20.7% from $7.7 in Q3 2022 to $9.3 billion in Q3 2023. (Digital Entertainment Group (DEG))
• Across 22 major providers, there are more than 1,500 FAST channels providing content to over 190 million users. (tubi + FOX, 2023)
• Between January and October 2023, the top 20 streaming platforms, on average, experienced a subscriber loss of 8% and a gain in 8% in per month, realizing an average net growth of zero in the U.S. (Magid – December 2023)
• The top 20 streaming networks remained steady with a churn rate at 47%. (Parks Associates, 2023)
• The average number of TV entertainment content sources in the home has dropped to 6.4 sources this year from 7.4 sources in 2022. (Hub Entertainment Research, 2023)
• 72% ​of consumers feel there are too many subscriptions (Hub Entertainment Research: Aggregation Study)

• Six out of seven (86%) U.S. households have at least one streaming video service from fifteen top subscription Video On-Demand and direct-to-consumer (DTC) services. (Leichtman Research Group, 2023).
• Half (50%) of households have four or more DTC streaming video services. (Leichtman Research Group, 2023)
• The average consumer subscribes to 2.8 streaming TV services and 10% pay for more than five streaming services simultaneously. (Forbes Home, 2023)
• Average DTC Streaming Services by Age (Leichtman Research Group, 2023)
  • A18-44: 4.8
  • A45-54: 4.0
  • A55+: 2.5
• The average TV content viewer uses about 7 services a month. (Horowitz Research)
• Netflix was the most popular streaming service with 52% subscribing followed by Amazon Prime (10%), HBO Max (7%), Apple TV (7%) and YouTube TV (7%). (Forbes Home, 2023)

Streaming Growth and Churn

• There are more than 300 OTT providers in the USA alone. (LemonLight)
• U.S. to add 104 million SVOD Subs by 2027 (Digital TV Research)

• After steep increases in consumption in 2021 and 2022, usage of the FAST alternatives remains strong in 2023. (Hub Entertainment Research, 2023)

• The U.S. market makes up around 80% of Free ad-supported streaming TV (FAST) revenue, which totals around $6.3 billion globally in 2023. (Source: Omdia, 2023)

• However, the vMPVD market is also highly volatile with two-fifths (40%) of vMPVD subscribers subscribing for less than 6 months and 70% less than one year. In addition, 42% are very likely/likely to cancel in less than one year. (Horowitz Research)

• For the first time, the “Big 5” SVOD services (Netflix, Prime Video, Hulu, Disney+ and Max) experienced a decline in subscribers since last year with fewer households opting to stack three or more. (Hub Entertainment Research, 2023)

• 35% of respondents say they would cancel Netflix over higher prices or password sharing crackdown translating into a loss of approximately 80 million subscribers. (Forbes Home, 2023)
• About 25% respondents say they would cancel any streaming service subscription if they cracked down on password sharing or over higher prices. (Forbes Home, 2023)

Aggregating Streaming Networks

• Integrating SVOD and FAST streaming subscriptions into customer’s pay-TV services have the opportunity to increase value and renewal rates, with customers most interested in features that simplify their viewing experience. (CTAM/Hub Entertainment Research: Aggregation Study)

• Integrated SVOD Services Create Pay-TV Subscription Value: MSO subscribers with at least one SVOD service integrated into their TV service are 50% more likely to give high value ratings and report being more likely to still have pay-TV subscription in a year (69%). (Hub Entertainment Research Aggregation Study, 2023)

• Six in 10 (61%) streamers would be likely to switch to a bundle of subscription streaming services from one provider if this option were available. (Source: Horowitz – April 2023)

   

• 59% said that even with an additional charge, they would be willing to pay for an app that would allow them to manage, use, and pay for all of their subscriptions in one place. Source: Hub Entertainment Research, December 2023)
• Viewers Favor Choice and Quality in TV but Complexity Makes Choices Harder: Although consumers are attracted to the variety of choices and quality in TV options, over 51% reported “too many shows” making overall TV content choices harder to make. (Hub Entertainment Research Aggregation Study, 2023)

Streaming Behavior & Spend

• Three out of four (75%) of SVOD users are satisfied with their TV services. (MarketCast)
• The big screen (CTV – Connected TV) is now the primary way audiences consume streaming content. (Source: Comscore, State of Streaming)
• Almost two-thirds (65%) of TV HHs stream on a smart TV at least monthly. (Source: Hub Entertainment Research, Connected Home Study)

• 81% of SVOD streamers pick services based on cost with 40% of AVOD streamers citing low fees as a key benefit to AVOD. (Variety Intelligence Report and MRI, 2022)
• Nearly half (47%) of respondents pay for streaming services they don’t use. (Forbes Home, 2023)
• Only a small fraction (4%) ever review how much they’re spending on streaming services and half say they forgot to cancel a service after the offer of a free limited time subscription expired. (Forbes Home, 2023)
• A quarter of U.S. adults wait for streaming originals’ finale before starting, citing the following as reasons: (YouGov. 2023)
• • A preference for binge-watching shows: 48%
  • Fears over the show’s potential cancellation with an unresolved ending: 27%
  • They do not want to wait for the next season after a cliffhanger: 24%
• 57% of subscribers signed up with a service to watch just one show, and more than half considered the opportunity to binge watch one show worth the price. (Forbes Home, 2023)
• Over one-quarter (27%) of streaming video services are shared and 12% of them are fully paid for by someone outside the household. (Leichtman Research Group, 2023)
• The cost of overall OTT ($75 avg monthly cost) is approaching the cost of the MVPD video ($91). (Horowitz Research)

• Streaming audiences expect superior streaming quality with 22% of younger streamers saying they’ll abandon a show or movie if playback or buffering issues occur, stopping more users from streaming than ads (17%). (tubi+FOX, 2023)
• Fewer cord-cutters feel they are saving “a really good amount of money” (39%). (Horowitz Research)

What is OTT?

“Over the top” (OTT) services refer to any type of video or streaming media that provides a viewer access to movies or TV shows by sending the media directly through the internet 

^{*Collins English Dictionary}

OTT Streaming Types and Examples

• SVOD = “subscription video-on-demand” in which a viewer sets up a monthly or yearly streaming subscription agreement for a flat monthly fee
• DTC = “direct-to-consumer” streaming service is when a network or streaming channel sells their service directly to the consumer bypassing retailers and wholesalers
• TVOD = “transactional video-on-demand”, which earn revenue via singular transactions “pay-per-view”
• AVOD = “advertising video-on-demand” services, which earn revenue from ads placed in streaming services
• FAST = “free ad-supported streaming TV services” are essentially live streaming services without the subscription and typically are an extension of traditional linear TV channels

^{*Please note that several streaming services can provide a hybrid model including subscription and advertising in their direct-to-consumer platforms.}