NPD: Netflix Still Primary Choice for SVOD Subscribers

PORT WASHINGTON: The number of viewers watching TV shows using SVOD services is on the rise, with Netflix maintaining a clear dominance in the market, according to The NPD Group’s new VideoWatch VOD report.

In Q1 2013, the number of viewers watching TV shows using SVOD services was up 34 percent compared to the prior-year period. Netflix had a 90-percent share of video-streaming units during the quarter, though this is 4 percentage points lower than last year. This means that customers are starting to try alternatives such as Hulu Plus and Amazon Prime.

In the TV category, which accounts for 80 percent of streams, Netflix holds an 89-percent share. Hulu Plus accounted for 10 percent of TV streams in Q1, while Amazon Prime accounted for 2 percent of the overall TV units streamed.

In the first quarter of 2012, 76 percent of SVOD subscribers streaming exclusively from Netflix. In Q1 2013, that fell to 67 percent; 10 percent of SVOD streamers used both Netflix and Amazon Prime and 8 percent used Netflix and Hulu.

“There’s no doubt that Netflix is driving the growth in SVOD, particularly with increased attention to television programming,” said Russ Crupnick, the senior VP of industry analysis at NPD. “We are also seeing good gains in the streaming numbers from Hulu Plus and Amazon Prime, and while neither pose an immediate threat to Netflix it is interesting to see which services later adopters will try.”

“Since its launch, Netflix Watch Instantly has enjoyed a virtual monopoly on the SVOD market, and the company still has a quite comfortable market-share lead,” continued Crupnick. “While Hulu Plus and Amazon both still have a long way to go before they come close to catching Netflix, we are beginning to see increasing trial of these services, even among some Netflix users.”