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Average US monthly SVOD spend tops $6, says report

Source: Parks Associates

Source: Parks Associates

Average monthly spending on Internet-based subscription video-on-demand (SVOD) services among US broadband households has increased from $3.71 per month in 2012 to $6.19 per month in 2015.

The figures come from a new research report by Parks Associates, which explains that, while a typical price point for a subscription service is $7-$10, several niche services are available for under $5, balancing the overall spend figure.

Meanwhile, US broadband households on average spend less than $1 per month buying and less than $1 per month renting digital video, indicating they purchase less than one digital video a year and rent between one and four videos per year.

“Multiple content players have held onto traditional content windowing strategies for years, but OTT technologies and emerging business models have finally forced these companies to experiment with new windowing strategies,” comments Glenn Hower, Research Analyst, Parks Associates. “New models for movies include day-and-date availability, as with the movie Beasts of No Nation, where it was released for streaming the same day as in the theater. For streaming TV shows like Jessica Jones or Transparent, viewers can watch full seasons all at once, satisfying binge-happy viewers. Consumers have quickly adopted these new habits as part of their OTT monthly subscriptions.”

Faz Aftab (Controller, ITV, Hub ITV) and Brian Curtis (Senior Director, Product Management, Comcast) will be among the panellists discussing ‘Content driven business models for a multiplatform media world’ at this year’s TV Connect (26th – 28th April 2016 ExCeL, London) 


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