Report: U.S. Homes Subscribe to Three SVOD Services, Cut Spending by $5 Monthly

U.S. homes subscribe to a lot of streaming video services. How many depends upon the latest research. New data from Altman Solon found that the average number of SVOD services in U.S. homes reached three in 2021 — up from 2.1 services in 2020. Indeed, SVOD subscriptions increased more than 37% annually from 2014 to 2020 according to the survey of more than 5,000 respondents conducted in August.

Meanwhile, live sports remain a large driver for pay-TV retention, with 83% of sports viewers subscribing to pay-TV. Nearly 50% of survey respondents said they still subscribe to pay-TV out of habit, while 34% said it was part of bundled service. The report found that 62% of respondents cited the low cost of online TV as a reason to subscribe.

“Live sports and news continue to attract viewers’ attention and drive the growth or decline of pay-TV and streaming services,” Matt Rivet, analyst at Altman Solon, said in a statement.

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The analyst contends that as U.S. viewers move away from pay-TV to streaming, consumer confusion among streaming services and a familiarity with pay-TV remain primary drivers to pay-TV retention.

“[Online TV services] need to re-define their value proposition to retain subscribers as content availability and value for money will ultimately decide the winners and losers in the race for subscribership,” Rivet said.

Solon also conducted a simulation examining five hypothetical scenarios in which pay-TV content options such as sports and news could be found on streaming services. The simulation found pay-TV penetration is expected to drop by 15.6 percentage points, from 69.3% to 53.7%, leading households to save about $5 in monthly bills for video content services.

DEG Credits New Initiatives With Drawing 26 New Members This Year

DEG: The Digital Entertainment Group is entering its 25th year with an influx of new members, the trade group announced Dec. 2.

The newest DEG members include Altman Solon, Anuvu, BIGtoken, Guts + Data, IRIS.TV, NAGRA, Omdia, Plex, Synamedia, TiVo, Visual Data Media Services, Vobile and ZOO Digital. Spherex also returned as a member of DEG, bringing the number of new DEG member companies to 26 so far in 2021 (a total that includes 12 new members announced at the end of the first quarter).

DEG’s Direct-to-Consumer Alliance (D2CA), created in 2019, and Advanced Content Delivery Alliance (ACDA), new this year, play an increasingly important role in focusing DEG membership for the future and attracting new members across a broad swath of the digital entertainment industry, according to the trade group.

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“DEG’s wide reach across content creators, retailers, platforms and strategic vendors is an important part of its value to members, bringing companies in different industry segments together to work within DEG to advance industry positions and meet common goals,” said DEG chair Jim Wuthrich, president of content distribution for WarnerMedia. “The D2C Alliance and the Advanced Content Delivery Alliance are the latest examples of this community building, and I’m thrilled that so many new members see the value in DEG. I’m happy to welcome all of the new member companies to the DEG community.”

The new ACDA within DEG addresses advancements in technology to enable more and improved content delivery. ACDA member companies are aligned in committees addressing localization, supply chain efficiencies and security, cloud/edge computing and 5G.

The D2C Alliance represents the global direct-to-consumer media industry and supports its members to help create a robust marketplace to lead the new era of content consumption.

“We are thrilled about the expanding participation in DEG of advanced content delivery and direct-to-consumer companies,” said Amy Jo Smith, DEG president and CEO. “I’m grateful that they see the value of membership in DEG, which has been working harder and smarter than ever since last year to provide our members increased opportunities for business collaboration, education and networking.”