What we learnt from the TiVo video trends report
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Unless you’ve been living under a rock, you’ve almost certainly heard of content streaming platforms like Netflix. Known in the industry as subscription video-on-demand services (SVOD), it’s an increasingly popular business model and TiVo conducts regular research to assess online video and pay-TV trends.
Although the report focuses on American and Canadian viewers, there are some key take-outs which are also relevant for us here in the UK and content creators wanting to set up their own subscription service.
Here’s what we learnt about what happened in 2017 and what it might mean for 2018. If you’re keen to find out more, you can also download the full video trends report.
Market adoption is growing
Paying for a subscription video-on-demand service is at an all time high with the majority of respondents now using these services.
Steady growth has been seen across the past four years with an overall 22.9% increase from 2013, taking current usage to 68.2%. These consistent increases “illustrate room for growth”, with uptake expected to rise further in 2018.
Viewers are willing to pay more
In 2015, the most common spending bracket was $6-$8, but by the end of last year it had increased to $9-$11. Spending at a level of $25 has also seen a upward trend, increasing by 5.5% since 2016 and 10.1% since 2014.
To some extent, these rises reflect increased subscription charges for the main service providers although combined with an increase in market adoption it also indicates that viewers are willing to accept higher payments.
Subscribers are engaging with content more
At 93.3%, the vast majority of subscribers watch content every day, an increase of 3.1% since 2015. The time spent watching is also increasing with nearly half 48.1% now consuming between 1-3 hours daily - a rise of 9.7% since 2016.
Daily consumption of content is extremely high and although further rises may be expected, this engagement factor will soon reach saturation point. Using time spent watching as an alternative metric, the proportion of those watching less than one hour of content is expected to fall further in 2018 as audiences continue to rely on subscription content for their entertainment.
It was all positive findings for video streaming subscription services across the key success factors of adoption, engagement and spend and these services are expected to continue shaping the content landscape into 2018.
This is great news for content creators who’ve made their own subscription business model app to connect with their audiences. If you’re looking for a simple, quick and affordable way to make an iphone or android app to publish your digital content, get in touch with us at SupaPass to discuss our white label app options.