Consumer appetite for subscription streaming services has transformed the industry over the past decade, but exclusive new data suggests SVOD ‘stacking’ behaviour in two key countries is now shifting. Richard Middleton reports.
The number of SVOD subscriptions held per household in the US and Brazil has fallen for the first time, according to exclusive new data from research group Omdia, but viewership of FAST channels is surging.
The number of SVOD subscriptions per household in the US stood at almost 3.5 in April 2023, but research group Omdia has found that number fell more than 10% to just under three services by November 2023.
“The traditional model of stacking multiple paid services is losing ground, partly driven by the increasing popularity of FAST channels
Maria Rua Aguete, Omdia
A similar pattern has emerged in Brazil and Mexico, where customers have also been opting for fewer services, with a decline in the practice of stacking multiple subscriptions.
The data will be revealed during a session by Omdia’s Maria Rua Aguete at Content Americas on Tuesday, which will also highlight stalling AVOD growth but a surge in FAST viewership.
In the US, FAST has become particularly prominent, with weekly users of these channels now constituting 46% of total video users, representing a 46% jump from just three years ago.
Brazil has witnessed an even more dramatic rise in FAST viewership, with weekly users now accounting for 36% of the video audience, a 4.5-fold increase from 2020.
The UK, too, has seen a surge in FAST viewers, now representing 21% of total video users.
Rua Aguete, Omdia’s senior research director, said: “After over half a decade of steady growth, we’re observing a shift in how paid video services are consumed.
“The traditional model of stacking multiple paid services is losing ground. This is partly driven by the increasing popularity of FAST channels, which are becoming a preferred choice for supplementary viewing.
“This shift suggests a significant change in viewer preferences and consumption habits, presenting new opportunities and challenges for service providers.”