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SVOD subscriptions on the rise, pay-TV subs declining

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MUMBAI: A new report from the NPD Group reveals that the number of US households subscribing to premium TV channels over the past two years has witnessed a six per cent decline as against an inverse growth spike of four per cent for SVOD subscribers.

The report, The State of SVOD, states that 32 per cent of US households were subscribed to premium TV channels in August 2013, compared to 27 per cent that subscribed to SVOD services. Overall, digital video transactions were up three per cent since 2012, reaching 70 per cent of all home video transactions in 2013. SVOD made up 71 per cent of all digital video transactions, and it continued to increase faster than all other digital acquisition types.

The SVOD service, Netflix, emerged as the clear leader in SVOD. However, Hulu Plus and Amazon Prime are receiving the largest growth benefits in the category, as consumers begin to add on secondary SVOD services.

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