SVOD Stacking Direct to Consumer Services Set to Move the Needle

Our clients have full access to all of our reports. Clients can log in to read this report. Click here to become a client or, you can purchase this individual report.

The 20,000 Foot View:  In the attention economy, everyone is your competitor – a point well made by Netflix’s Reed Hastings’ observation that the company is now vying for viewer time with the popular game Fortnite. Now that we are entering the post-peak phase of the attention economy, the focus for video is shifting to the overlap between subscription video on demand (SVOD) users and the additional services they use. In the early days of streaming, audiences usually had just one video subscription (typically Netflix). Now, however, the long-term effect of exclusive original content strategy is consumers having multiple SVOD subscriptions, or SVOD stacking. With a ream of new direct to consumer        services coming to market, SVOD stacking will grow and in turn accelerate the decline in traditional pay-TV spend.

Key Findings

• The rise of        streaming services like Disney+ will accelerate the number of households with multiple video subscriptions
• SVOD stackers represent        of all SVOD users, rising to        of binge viewers
• SVOD stackers represent        of pay-tv subscribers,        of cord cutters and        of cord shavers
• SVOD stackers have a clear Millennial skew:        of multiple SVOD subscribers are        years old
       of 20-24-year olds have multiple SVOD subscriptions, making them the most digitally promiscuous age group
• At               year olds are the least likely to be SVOD stackers 
       of Netflix subscribers are Spotify subscribers and        are Amazon Prime Music subscribers        of Amazon Prime Video subscribers are also Netflix subscribers
• Japan at        has the highest share of Netflix subscribers with multiple SVOD subscriptions
       of Amazon Prime Video users are also Amazon Prime Music users; however,        use Spotify
• The days of SVOD monogamy are fading, but overall pay-TV average revenue per user (ARPU) could rise
• Amazon sets a model of best practice for how to compete both with and around Netflix

Companies and Products Mentioned:  Amazon Music, Amazon Prime Video, Apple Music, Deezer, Disney+, ESPN+, Netflix, Spotify, Warner Media, Comcast, NBCUniversal