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Analyst: SVOD Viewers Not All Alike

5 Jul, 2017 By: Erik Gruenwedel

With most U.S. households having broadband, about two-thirds of them use subscription streaming video services such as Netflix, Amazon Prime Video and Hulu, among others. Yet, their time spent watching SVOD is hardly homogeneous, especially when it comes to TV viewing behavior and the role that subscription streaming plays, according to new data from TDG Research.

Cord-cutters, the demographic of broadband users that eschew traditional pay-TV, spend 68% of their TV time watching SVOD, about 25 hours per week. This group also watches most TV in general (about 34 hours/week) among broadband households.

By contrast, those using SVOD to augment their TV sources spend 20% of their TV time watching SVOD, 3.5 hours per week. Notably, these viewers spend on just over 14 hours each week watching TV — 60% less than cord-cutters.

The two groups spend about the same amount of time each week watching TV SVOD (about five hours per week). However, SVOD’s contribution to their total TV time varies significantly. For example, those using SVOD as supplemental entertainment spend 35% of their weekly TV time watching SVOD, while cord-cutters spend 26% of their weekly TV time watching SVOD.

“The industry continues to speak of SVOD viewers as if they are a homogenous group with common behavior and preferences. Nothing could be further from the truth,” Michael Greeson, principal analyst at TDG, said in a statement.

“TV streamers are as varied as TV viewers in general, and understanding these differences is critical to operators and networks hoping to carve out a larger share of ‘TV time.’ Simply rolling a data-driven notion of a ‘personalized TV service’ is insufficient," Greeson said. "True differentiation requires designing and packaging content to increasingly specific preferences not tracked by industry metrics.”

About the Author: Erik Gruenwedel

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