Research: SVoD stacking falling; FAST viewership rising
January 25, 2024
Consumer appetite for subscription streaming services has transformed the industry over the past decade, but data from Omdia has found a notable shift in SVoD ‘stacking’ behaviour.
According to Omdia, there has been a significant change in the way consumers are subscribing to multiple streaming services. Previously, consumers would often stack multiple subscriptions to gain access to a wider range of content. However, the new data suggests that there has been a shift in this behaviour, indicating that consumers are becoming more selective in their choices and opting for a more focused approach to their streaming subscriptions.
Discussing the trends, Maria Rua Aguete, Omdia Senior Research Director revealed that the countries where the growth of streaming and studio services (AVoD and SVoD) are showing signs of slowing down are the US, and Brazil.
“After over half a decade of steady growth, we’re observing a shift in how paid video services are consumed. The traditional model of stacking multiple paid services is losing ground. This is partly driven by the increasing popularity of free ad-supported television (FAST) channels, which are becoming a preferred choice for supplementary viewing,” said Rua Aguete.
The number of SVoD subscriptions per household in the US was approaching 3.5 in April 2023, but Omdia’s research has found that number fell more than 10 per cent to under three services by November 2023.
In line with Omdia’s forecasts, FAST has remained on track to become a prominent service in the US, with weekly users of these channels representing 46 per cent of total video users. Brazil has also seen a dramatic rise in FAST viewership, with weekly users now accounting for 36 per cent of the video audience, a 4.5-fold increase from 2020.
The UK, another key player in the FAST market, has seen a surge in FAST viewers, now representing 21 per cent of total video users.
“The FAST channel market continues to witness strong growth in the UK, Canada and Brazil, with revenues projected to reach $8 billion (€7.3bn) in 2024. This poses both opportunities and challenges for service providers as they adapt to the changing landscape to keep up with evolving viewer demands,” concluded Rua Aguete.