Omdia: SVOD Stacking Falls, FAST Viewership Rises

New data from Omdia points to a “significant change” in the way consumers are subscribing to multiple streaming services as well as a continued rise in FAST viewership.

While consumers previously would often stack multiple subscriptions to gain access to a wider range of content, the new data from Omdia suggests that there has been a shift in this behavior, indicating that consumers are becoming more selective in their choices and opting for a more focused approach to their streaming subscriptions.

Maria Rua Aguete, Omdia senior research director, revealed that the countries where the growth of streaming and studio services (AVOD and SVOD) are showing signs of slowing down are the U.S. and Brazil. “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 free ad-supported television (FAST) channels, which are becoming a preferred choice for supplementary viewing.”

The number of SVOD subscriptions per household in the U.S. was approaching 3.5 in April 2023, but Omdia’s research has found that number fell more than 10 percent to under three services by November 2023.

FAST has remained on track to become a prominent service in the U.S., with weekly users of these channels representing 46 percent of total video users. Brazil has also seen a “dramatic rise” in FAST viewership, according to Omdia, with weekly users now accounting for 36 percent of the video audience, a 4.5-fold increase from 2020. The U.K. has seen a surge in FAST viewers, now representing 21 percent of total video users.

Rua Aguete added: “The FAST channel market continues to witness strong growth in the U.K., Canada and Brazil, with revenues projected to reach $8 billion by 2024. This poses both opportunities and challenges for service providers as they adapt to the changing landscape to keep up with evolving viewer demands.”