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Nielsen breaks down encouraging economics behind US SVOD

source: nielsen

source: Nielsen

According to Nielsen’s most recent Total Audience Report, 41% of U.S. homes had access to an SVOD service in fourth-quarter 2014, with figures broadly suggesting that the tentative US economic recovery could be contributing to a growth in SVOD subscriptions and usage.

Overall, the report found that penetration of both high-speed Internet and SVOD access are strongly income-related. In fact, about 13% of homes boast multiple streaming services in their homes and nearly half of homes with SVOD access have a yearly household income of more than $75,000, while two-thirds of homes without broadband access have annual household incomes of less than $40,000.

It’s not an “all SVOD” or nothing proposition to homes with these services, however. Actually, it’s quite the contrary.

“When looking at how homes with access to subscription-based streaming services compare to a typical TV home, homes with broadband and no SVOD – and even homes with no broadband at all – we see that SVOD homes really go ‘all in’ in terms of the devices that they are using through their traditional televisions,” comments Dounia Turrill, SVP Insights, Nielsen. “From DVRs to video game console usage, these homes – perhaps because of their income level – both adopt and rely on these devices at a much higher rate. Technology begets technology.”

The report found that homes with subscription streaming services have a both a penchant for TV-connected technology and, perhaps more importantly, display the greatest usage of these devices – nearly 50 minutes more a day than a typical TV home. Additionally, these homes average 10 more minutes daily watching time-shifted TV and double that in terms of time spent using a multimedia device (such as Apple TV and Roku) than a typical TV home.

Click here to download the full, free TV Connect (28 – 30 April 2015 ExCel, London) brochure

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