Survey: Rise in Households With Multiple Streaming Video Services12 Oct, 2016 By: Erik Gruenwedel
There’s a reason Netflix co-founder Reed Hastings doesn’t fret (publicly) about the subscription streaming competition. An increasing number of U.S. homes subscribe to multiple services besides Netflix, including Amazon Prime Video and Hulu, according to new data from GfK.
The research firm — based on interviews with 1,054 consumers — found that 16% of the domestic viewers of TV, streaming video and packaged media (DVD/Blu-ray Disc), subscribe to multiple SVOD services. That’s up from 10% in 2013.
Characterized as “self-bundlers,” households with multiple streaming services typically have more children under the age of 18 and higher mean incomes than households without multiple streaming services. “Self-bundlers” are also more likely not to subscribe to linear pay-TV.
“As consumers start to self-bundle, the potential impact of increasing subscriber fees for each streaming service will be compounded,” David Tice, SVP of media and entertainment at GfK, said in a statement.
Among survey respondents, nearly 50% subscribe to at least two SVOD services, with 20% using Netflix and Amazon Prime Video; 9% using Netflix and Hulu and 5% using all three.
Notably, households using Netflix and Hulu are less likely (57%) to have pay-TV than households using Netflix and Amazon Prime Video (67%).
“The last one to a price-increase party may be the first one canceled — so individual streaming services need to consider competitor plans before instituting price hikes. There may also be a place in the market for a third-party aggregator of discounted streaming services,” Tice said.