About Futuresource Consulting

Futuresource Consulting, the specialist research and consulting company, is delighted to be the official knowledge partner for CEATEC JAPAN. The company can trace its roots back to the 1980s and provides market insights into consumer electronics, digital imaging, entertainment media, broadcast, optical manufacturing, storage media, professional IT and education technology.
With more than 70 full-time employees providing in-depth analysis and forecasts across consumer and professional electronics categories, Futuresource is able to advise on market, competitive and technological developments, providing clients with access to the information that helps produce the best possible results.

Vol.1452017/9/28

Shifting Demographics and Premium Tiers Driving Next Wave of SVoD Growth

05 Sep 2017 - Subscription Video on Demand (SVoD) is maintaining its momentum, with Netflix and Amazon continuing to lead the charge in the first half of 2017, despite increased maturity. This is according to the latest biannual 'Living With Digital' consumer research report from Futuresource Consulting covering the USA, Canada, UK, Germany, France, Italy, Spain, Australia and Japan.

Just under half of households in the UK and approximately a quarter in France have at least one SVoD subscription, this compares to two-thirds of households in the USA. The appetite for multiple SVoD services is notably stronger in the USA, driven by the wider availability of offerings and the ability to access different content on different services.

Netflix remains the key driver in most markets, but where it is becoming well established, the 'Living with Digital' research indicates that future growth will be increasingly driven by older age groups buying into the service. In the UK - the leading international market outside the USA for Netflix - over 60% of 16-35 year olds use Netflix, only marginally behind Pay-TV uptake. However, just 25% over 35 year olds use Netflix – providing the biggest opportunity for future growth.

In France, returning subscribers have helped boost Netflix's performance in the first six months of the year, while the service's premium plan uptake has increased in most markets, with 27% of subscribers taking this option in Germany.

Its main SVoD rival in a number of key markets, Amazon, has also posted a strong performance so far in 2017 for its overall Prime service. Two-thirds of US respondents now use Prime, with the figure approaching 50% in Germany. In France, the launch of Prime Video at the end of 2016 has helped the overall Prime service reach almost one-quarter of households.

Netflix's momentum is undoubtedly being driven by the increasing importance to viewers of its Original TV shows in all countries, with the research highlighting particular increases in the USA, Italy and Spain. This increase has also seen Netflix widen the gap in terms of the importance of original content compared to Amazon Prime Video (in the countries where Prime Video is established).

The survey also highlights that smart TVs are the most important form of hardware for accessing Netflix, with respondents more often stating that their smart TV is the first platform they go to watch Netflix. In the US, 39% of Netflix users said a smart TV is their most used access device, with a further 10% using it as an auxiliary device to top up watching from other devices (e.g. smartphone, tablet, PC). A similar trend is seen across Amazon Prime Video users in the countries where it is established, whilst iTunes Video users are primarily reliant on Apple TV boxes for big screen viewing.