Hub: SVOD Emerges as Consumers’ “Starting Gate”

More U.S. audiences start their viewing sessions on SVOD than on any other platform, according to Hub’s latest Decoding the Default report.

Per the study, 40 percent of U.S. consumers begin a viewing journey on SVOD, up from 36 percent five years ago, while live TV has dropped from 43 percent to 32 percent. Free with ads, including YouTube, is the starting point for 17 percent of consumers.

A greater proportion of younger viewers start a viewing journey on SVOD, with 56 percent defaulting to a paid streaming service and another 22 percent starting on a free streaming platform; only 15 percent choose live TV.

In streaming, Netflix was the top choice for 19 percent of respondents, well ahead of the 11 percent for YouTube and 5 percent for Hulu, but down from 23 percent five years ago. In total, 21 percent said their starting point was an SVOD other than Netflix.

“This year’s findings underscore how crowded and competitive the TV ecosystem has become,” said Jon Giegengack, founder and principal at Hub and one of the study authors. “Netflix is the dominant streaming platform and now offers something for everyone: scripted and unscripted TV, original movies, live events and now sports. But this opens an opportunity for the legion of smaller, more specialized services that focus on super-serving specific audiences.”

“The data is clear: being a viewer’s default dramatically increases the likelihood they’ll keep you,” said Christina Pisano, consultant at Hub and one of the study authors. “First-stop status drives more sessions, more time spent, and higher retention. That’s why the battle for the TV home base is the most important fight in today’s entertainment landscape.”