SVOD Market Primed for More Churn in 'Reset,' Reports Horowitz Research
Some 51% of U.S. TV content viewers subscribe to a traditional pay-TV service, down from 63% last year and 81% in 2020, said Horowitz Research Wednesday. Though 37% are paying for a subscription VOD service -- and not cable or…
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satellite -- a 30% year-on-year increase, the overall percentage of TV content viewers subscribing to at least one SVOD service fell to 62% from 74% in 2021, partly due to a drop in Netflix subs, it said. An additional 10% have access to other SVOD services by borrowing passwords, said the research firm. Streaming subscribers reported spending an average $75.80 monthly on SVOD and/or virtual MVPD services, up $26 a month from a year ago. The share of TV viewers watching free, ad-supported services, including over-the-air content via antenna, was unchanged at 66%. Survey findings suggest churn will become a "bigger challenge" as consumers become even more cost-conscious, Horowitz said, saying 18% of SVOD subscribers are planning to cancel at least one of their services, 42% for vMVPD customers. The next phase in the maturing industry “will be a reset,” said Horowitz Chief Revenue Officer Adriana Waterston. The firm predicts more ads in free or low-cost ad-supported tiers and more consolidation of services and subscriptions.