Netflix dominates SVoD growth

netflixAccording to The NPD Group, Netflix continues to clearly dominate the growth in the (SVoD) category. In the first quarter of 2013 the number of viewers watching television shows using SVoD services increased 34 per cent, compared to the same quarter year-ago. NPD’s VideoWatch Digital tracking shows Netflix dominating the sector, with a 90 per cent share of video-streaming units during Q1 2013, which was 4 per centage points lower than last year.

In the TV category alone, which accounts for 80 per cent of streams, Netflix holds an 89 per cent share. HuluPlus showed healthy growth in 2013, with 10 per cent of TV streams in Q1, while Amazon Prime accounts for just 2 per cent of the overall TV units streamed.

“There’s no doubt that Netflix is driving the growth in SVoD, particularly with increased attention to television programming,” said Russ Crupnick, senior vice president of industry analysis at NPD.  “We are also seeing good gains in the streaming numbers from Hulu Plus and Amazon Prime, and while neither pose an immediate threat to Netflix it is interesting to see which services later adopters will try.”

In Q1 2012, 76 per cent of SVoD subscribers streamed only from Netflix. In Q1 2013 that figure fell to 67 per cent, while 10 per cent of SVOD streamers used both Netflix and Amazon Prime, and 8 per cent used both Netflix and Hulu.

“Since its launch, Netflix Watch Instantly has enjoyed a virtual monopoly on the SVoD market, and the company still has a quite comfortable market-share lead,” Crupnick said. “While Hulu Plus and Amazon both still have a long way to go before they come close to catching Netflix, we are beginning to see increasing trial of these services, even among some Netflix users.”

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