Report: Original Content Paying Off for Netflix, Amazon Prime Video

20 Mar, 2017 By: Erik Gruenwedel

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Netflix, Amazon Prime Video and Hulu are spending billions collectively creating original content, with proprietary TV shows and movies driving subscriber growth at Netflix and Amazon, according to a new from 451 Research.

The New York-based firm found that 33% of streaming subscribers chose their service for its original content, up 8% year over year. Original content has always been a major differentiator for HBO and Showtime, but the survey of 1,270 respondents conducted last December highlights a growing importance of original fare among Netflix users (36%, up 9% over a year) and Amazon Video users (36%, up 14% over a year).

Among all respondents who pay for a streaming service, 79% subscribe to Netflix and 53% to Amazon Prime Video. Prime, which went global this past December, continues to be the growth story, up 5% over the past year.

Access to movies (50%) remains the top reason why consumers pay for SVOD; viewing complete seasons of TV shows (45%) is a close second and has increased 6% in the past six months.

“Viewing original content has become a much more important factor over the past year in choosing streaming services, and the data shows consumers are simply watching more of it.” Andy Golub, managing director of 451 Research’s surveys and research, said in a statement.

While both Netflix and Prime Video users in the survey have shifted toward watching more original content, there is an even faster increase among Prime users (from 7% to 31%) who say original content is their most-watched type of video content, compared with Netflix users (from 20% to 32%). The survey only mentioned Netflix and Amazon, but Hulu, which is co-owned by Disney, Fox, Comcast and Time Warner, also spends significantly on original content.

Meanwhile, 19% of respondents said they pay for three or more services — up 4% over the previous year. These subs use Netflix (95%) and Amazon Video (82%), adding a combination of a-la-carte platforms, including Hulu, HBO Now and iTunes.

 

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