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Futuresource: Older Consumers to Drive SVOD Growth

5 Sep, 2017 By: Erik Gruenwedel

Despite launching the subscription streaming video market 10 years ago, Netflix, along with Amazon Prime Video, continue to spearhead market growth globally — driven by increased demand from older consumers, according to new data from Futuresource Consulting.

Just under 50% of households in the United Kingdom and about 25% in France have at least one SVOD subscription — compared with 66% of households in the United States. Multiple SVOD services in a household are more prevalent domestically, underscored by the wider availability of offerings and access to different content on different services.

While Netflix remains the key driver in most markets, Futuresource suggests older age groups buying into the concept for the first time will drive future growth.

In the U.K., the leading international market for Netflix, more than 60% of 16 to 35 year olds use Netflix, only marginally behind pay-TV. However, just 25% of those 35 and older use Netflix — providing the biggest opportunity for future growth.

In France, returning subscribers boosted Netflix's performance in the first six months of the year, while the service's premium plan uptake has increased in most markets, with 27% of subs taking this option in Germany.

Main SVOD rival Amazon has also posted a strong performance so far in 2017 for its Prime Video service. Two-thirds of U.S. respondents now use Prime, with the figure approaching 50% in Germany. In France, the launch of Prime Video at the end of 2016 helped the streaming service reach almost one-quarter of households.

Netflix's momentum is undoubtedly being driven by the increasing importance to viewers of its original TV shows, with the research citing particular increases in the U.S., Italy and Spain. This increase has also seen Netflix widen the gap in terms of the importance of original content compared to Amazon Prime Video.

Futuresource contends smart TVs remain important hardware for accessing Netflix, with survey respondents often stating that their smart TV is the first platform to access Netflix. Domestically, 39% of Netflix users said a smart TV is their preferred device, with another 10% using it along with smartphones, tablets, PCs and streaming media devices. A similar trend is seen across Amazon Prime Video, while iTunes users are primarily reliant upon Apple TV for big screen viewing.

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