Over two-fifths of US homes have access to SVOD service

DetailsJoseph O'Halloran | 12 March 2015

The growing popularity of services such as Netflix and Amazon Prime in the US is undoubted, but research by Nielsen has found the extent to which such services have been adopted.

NielsenSVODNielsen discovered in its Total Audience Report that as of November 2014, over 40% of US homes had access to a subscription video-on-demand (SVOD) service and 13% of homes boasted multiple streaming services in their homes. It also found that homes with subscription streaming services have both a penchant for TV-connected technology and, perhaps more importantly, said the TV measurement firm, display the greatest usage of these devices. This was calculated to be nearly 50 minutes more than a typical TV home, averaging ten more minutes daily watching time-shifted TV and double that in terms of time spent using a multimedia device such as Apple TV and Roku.

The analyst also suggests that because the vast majority of US TV households have multiple technologies available, consumers' time and attention around media was in flux. It noted that increased video viewing on digital platforms to both native digital content and TV-produced content, as well as the rise of SVOD across all platforms, was changing the consumption of traditional media.

"[The] new reality is that increasing consumer time and attention creates opportunities for content owners. However, economics in digital remain challenging for all but a few," said Nielsen SVP Insights, Dounia Turrill. "With continued and accelerating fragmentation, the risks and rewards are potentially high, and the ability to stake a claim in the expanding industry pie is central to companies' growth. The landscape has created new competitors akin to a modern-day gold rush for traditional video and audio, with the emergence of a relatively small number of digital leaders, all of whom are looking not just to compete, but to stake a claim and prosper in that space."

Concluding, Nielsen said that even though the risks and rewards are potentially high in this environment, the ability to stake a claim in the expanding industry pie is central to companies' growth.