Analyst: ‘SVoD landscape increasingly fragmented’
March 11, 2021
By Colin Mann
Analyst firm Futuresource Consulting’s latest Living with Digital survey, in field in December 2020, has once again highlighted the continued upwards trajectory of digital video uptake in H2 2020, after an already impressive and partly pandemic-fuelled first half.
SVoD uptake continued to increase, driven by multiple service uptake but also as a result of the continued strength of Netflix and Amazon Prime Video. Overall, Amazon Prime uptake was one of the big winners, with the pandemic boosting the appetite for ‘free’ shipping and video streaming, whilst strong gains in the UK were boosted by the increased availability of Premier League Football.
“Disney+ has been a key driver of multiple SVoD uptake in 2020,” notes David Sidebottom, Principal Analyst at Futuresource Consulting. “Other services will also continue to help drive this phenomenon into 2021, with the likes of more recently launched services such as HBO Max, Paramount+ and Discovery+ key to this, especially in the USA.”
The survey indicates a continued future appetite for new SVoD services; typically, 30 per cent of SVoD subscribers say they will take more services in 2021 than currently, with only 10 per cent saying they will take less.
“However, consumers are becoming increasingly savvy about managing their subscriptions,” adds Sidebottom. “Over one quarter say they will dip-in-and-out of services, more so in 2021 than currently, highlighting once more the importance of churn management for services in an increasingly cluttered landscape. This increasingly fragmented SVoD landscape is also mirrored across overall video viewing trends.”
The survey saw respondents in many countries report an increasing proportion of their viewing share on typically less dominant viewing categories at the end of 2020 compared to June 2020. Viewing digital transactional video, social media video, broadcaster VoD and even watching DVDs and Blu-rays, marginally increased their share within the period, although they remain comparatively small against traditional TV and SVoD viewing share in all countries.
Furthermore, says Futuresource, this illustrates the increased fragmentation of viewing across different services, platforms and indeed business models, as well as the increased requirement for aggregated experiences.