With the popularity of Netflix’s original content and more and more people streaming its offerings, it’s not a surprise that overall popularity of subscription video on demand (SVOD) is surging. And it’s coming at the expense of HBO and other traditional premium cable channels.
The research firm NPD Group issued a report this week stating that in the last two years, households subscribing to subscription on-demand have increased 4 percent, while 6 percent fewer households subscribe to such premium TV channels as HBO and Showtime.
NPD’s State of SVOD found that while there are still more premium than SVOD households in North America, the gap has narrowed, with 32 percent of homes preparing for HBO and other premium cable channels and 27 percent subscribing to such services as Netflix and Hulu Plus:
“As SVOD services have gained momentum, it’s clear that some consumers are trimming their premium-TV subscriptions,” said Russ Crupnick, senior vice president of industry analysis for The NPD Group. “As SVOD increasingly strives to become a channel itself, viewers might consider it to be an adequate substitution for other premium channels, or perhaps they are switching to economize on their time and money spent.”
While the SVOD number overtake the cable one this year? With more and more programming going to Netflix and the like, along with the arrival next month of the new WWE Network, that’s very possible.