Kantar: 109 Million U.S. Households Have SVOD Service, Netflix’s Market Share Drops

The U.S. subscription VOD service market continues to expand with 85% of households now accessing at least one service, according to new data from Kantar. At the same time, SVOD pioneer Netflix’s domestic market share is eroding.

The proportion of U.S. households with SVOD service is up 2% from the previous-year period after two consecutive quarters of decline. This means there are now 109.4 million households with subscriptions as of December 2021.

At the same time, video streaming use is growing primarily due to free ad-supported TV (FAST), and ad-supported VOD, with FAST growing 4.9%, and AVOD use up 3.6%, and SVOD up 1.8%.

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About 9% of domestic households accessed a new streaming service in the fourth quarter of 2021, up from 8% in Q3 2021. Amazon Prime Video is the top destination for new SVOD subs for the third consecutive quarter, but its share is down 4% quarter on quarter.

The Netflix subscriber base is now below two-thirds of all U.S. subscribers, as penetration continues to decline — down slightly 0.5% in the quarter, despite the success of “Squid Game.” This represents a five-percentage-points year-on-year skid.

Indeed, stacking continues to grow among current streamers, with the average U.S. household now using 4.7 services.

With the success of “Yellowstone,” the most recommended content in Q4, Paramount+ market share of new users (now at 8% of all new streaming). Peacock, which has catalog seasons of “Yellowstone,” also benefited in the AVOD and FAST space.

Apple TV+, which saw growth due to “Ted Lasso” in Q3 and Q4 21, is now facing higher planned cancellation going into Q1. As FAST drives growth of streaming, users are expecting more from their free services, with original content and quality of shows increasingly driving sign up.

Kantar said the first quarter of 2022 can expect to see more fluctuation of subscribers as stacking continues to grow and planned cancellation rates are up across the board.

“Streamers feel they can get better quality content from FAST than before, which may have negative implications for paid streaming,” read the report. “As the U.S. passes the next wave of COVID-19, overall streaming screen time may start to decline.”

Report: 74% of U.S. Homes Have SVOD

It is indeed an over-the-top video world.

New consumer research from Leichtman Research Group finds 74% of all U.S. households have a subscription video-on-demand (SVOD) service from Netflix, Amazon Prime, and/or Hulu — up from 64% in 2017, and 52% in 2015.

Among those with an SVOD service, 69% have more than one of these services — up from 51% in 2017, and 38% in 2015. Overall, 51% of U.S. households now have more than one SVOD service, an increase from 33% in 2017, and 20% in 2015.

These findings are based on a survey of 1,116 households nationwide and are part of a new LRG study, Emerging Video Services 2019. This is LRG’s 13th annual study on this topic.

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Leichtman found 64% of all adults stream an SVOD service at least monthly, and 41% stream more than one SVOD service at least monthly
33% of adults stream an SVOD service daily — compared to 29% in 2017, and 16% in 2015.

About 51% of ages 18-34 stream an SVOD service daily — compared with 34% of ages 35-54, and 15% of ages 55+.

Another 27% of respondents with Netflix agreed that their subscription is shared with others outside their household — compared to 19% with Hulu, and 10% with Amazon Prime Video.

Nearly 51% of adults watch video on non-TV devices (including mobile phones, home computers, tablets, and e-Readers) daily — up from 43% in 2017, and 31% in 2014.

“Nearly three-quarters of all U.S. households have at least one SVOD service, and one-third of all adults stream an SVOD service daily, including half of all ages 18-34,” Bruce Leichtman, president and principal analyst for LRG, said in a statement. “With over half of all households now getting multiple SVOD services, and new streaming services on the way, it is inevitable that the number of households having and using multiple services will continue to grow. However, with expanded options, consumers will increasingly decide which streaming services they pay for directly, and which they share with others.”