US Viewers Set Global Pace for Subscription Video-on-Demand - eMarketer

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US Viewers Set Global Pace for Subscription Video-on-Demand

Digital video viewing not as widespread worldwide

September 8, 2016

More than half of US internet users subscribe to subscription video-on-demand (SVOD) services like Netflix, Hulu and Amazon Prime Video. And according to June research, the US is well ahead of other major markets, such as the UK and Australia, when it comes to the ongoing trend around cord-cutting.

Internet Users in Select Countries Who Subscribe to Subscription Video-on-Demand Services, June 2016 (% of respondents)

Research and forecasting firm Futuresource Consulting surveyed 16,072 internet users ages 16 and older in eight countries about their preferences for digital entertainment.

According to the data, 61% of US respondents said they subscribe to a SVOD service, followed by 49% of those in Canada. While only a third or fewer said they were subscribers in the other the countries surveyed, adoption is growing. Research from Gfk found that SVOD is expanding faster than any other segment of home video in Germany, and sales in the country will likely reach €296 million ($328.4 million) in 2016.

Globally, when looking at VOD compared to other pay-TV and video services, digital video viewing is not as widespread. In March 2016, Nielsen reported that 26% of internet users worldwide who paid to access TV or video were paying for a VOD service in September 2015. Overall, respondents were still far more likely to pay to watch cable TV. However, North America deviates from this trend, where the share of paid VOD users (35%) surpassed that of cable TV customers (31%).

Internet Users Worldwide Who Currently Pay for TV/Video Service, by Region, Sep 2015 (% of respondents)

In related news, Hulu announced in August that it would be dropping its free streaming ad-supporting service in order to fully focus on its subscription service. It’s clear that the VOD provider is seeing a revenue opportunity as more and more US viewers choose to watch TV shows and movies on these types of streaming services.

Test Your Cross-Platform Attribution Know-How

More than eight in 10 US senior-level agency and marketing professionals polled said they were interested in learning more about multichannel attribution in 2016.


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