Nearly one-fifth of the U.S. population relied solely on subscription video-on-demand services such as Netflix, Hulu and Amazon to view video content in the 12-month period ended March 2018, according to a study by The NPD Group.
According to NPD’s “Entertainment Trends in America” report, 17% of consumers have abandoned the purchase or rental of content in physical or digital formats, up from 11% in 2017.
Meanwhile, 24% of consumers rely only on transactional methods — buying or purchasing content on physical discs or in digital formats, while 32% use a combination of transactions and SVOD.
Among SVOD consumers in the United States, 40% subscribed to only one service as of March 2018, while 37% subscribed to two services, and 24% subscribed to three or more services.
Millennial consumers (ages 25 to 34) were the demographic most likely to subscribe to three or more streaming video services (42%), but year-over-year growth for this age range was flat. Generation Z consumers (ages 18 to 24) who subscribed to three or more services actually declined by 5 percentage points, year over year, while Generation X (ages 35 to 55) grew 3 percentage points.
“As the technology gets older and less novel, as smart TVs become more common, and as more streaming content becomes available, older consumers with more disposable income are coming on board with streaming video services,” Ricardo Solar, president of media entertainment for NPD, said in a statement. “Although Millennials were the first to adopt SVOD, GenX and Boomers are now driving the growth among those subscribing to multiple services.”