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Original Content Investment “Paying Off” for Netflix, Amazon


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NEW YORK: According to 451 Research’s latest Voice of the Connected User Landscape (VoCUL) survey, consumers are increasingly paying for three or more streaming video services and original content is becoming an important reason that people are subscribing.

The survey finds that 19 percent of streaming subscribers are paying for three or more services, up from 15 percent reported in the previous year. These streaming enthusiasts are creating their own bundles of video services, starting with Netflix (95 percent) and Amazon Video (82 percent) then adding a combination of subscription and a-la-carte platforms, including Hulu, HBO Now and iTunes.

Among the respondents who pay for a streaming service, 79 percent say they subscribe to Netflix and 53 percent to Amazon Video. Amazon Video continues to be the growth story, up 5 points over the past year.

As for why consumers pay for streaming video services, access to movies (50 percent) remains the top reason, while viewing complete seasons of TV shows (45 percent) is a close second (and has increased 6 points in just six months). Thirty-three percent of streaming subscribers chose their service for its original content, up 8 points year-over-year.

Original content has always been a major differentiator for HBO and Showtime, but the VoCUL survey highlights a growing importance of original content among Netflix users (36 percent, up 9 points over a year) and Amazon Video users (36 percent, up 14 points over a year). Both Netflix and Amazon Video users in the VoCUL survey have shifted toward watching more original content over the past two years, and there is an even faster increase among Amazon Video users (from 7 percent to 31 percent) who say original content is their most watched type of video content, compared to Netflix users (from 20 percent to 32 percent).

Andy Golub, managing director of 451 Research’s Voice of the Connected User Landscape end-user surveys and research, said: “Netflix and Amazon have spent billions creating exclusive original content to differentiate themselves within a competitive streaming TV market, and our latest surveys show that it’s resonating with customers. Viewing original content has become a much more important factor over the past year in choosing streaming services, and the data shows consumers are simply watching more of it.”



About Kristin Brzoznowski

Kristin Brzoznowski is the executive editor of World Screen. She can be reached at kbrzoznowski@worldscreen.com.

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