Milestone reached for subscription-based video on demand (SVOD)

June 29th, 2016 Back

At Vidgo TV, we are thrilled about the industry technology developments but, more importantly, we are super excited about how much the public has been embracing the concept of video streaming. The last few years have seen the exponential growth of users adopting the new technologies.

According to the latest Nielsen survey, daily usage of tablets and smartphones alone has increased 63% and 60%, respectively, among adults since just last year: tablet usage is up 12 minutes, and smartphone usage increased 37 minutes

Nevertheless, we know that in order for subscription-based video on demand to establish itself in  the market, the number of users would have to go way beyond the early adopters, reaching the masses the same way DVR adoption has reached half of American households in the past few years.

In fact, one of the measures we have been following closely is the rate of adoption of SVOD compared with DVR access in American households, knowing that roughly half of American households enjoy DVR access. Reaching the same level of adoption as the DVR would mean that subscription-based video on demand would mean a firm foot in the entertainment world.

And here were are. Finally, SVOD has reached a double milestone: not only it’s at the same level of  adoption as the DVR, but it has also attained the significant figure of reaching 50 percent of American households. Half of US households enjoy access to SVOD.

 

The 80-20 rule

 

The 80-20 rule, or the Pareto principle, establishes that roughly 80 percent of the effects come from 20 percent of the causes. And this is something we also see in some of the other numbers published by Nielsen in the survey.

 

Heavy users account for most of the viewing number

As expected the top percentage of users accounts for the most of the viewing, since these heavy users tend to be the ones driving the demand up. Nielsen survey reveals staggering numbers when it comes to the impact of these heavy users.

  • 83 percent of smartphone viewing comes from the top 20 percent of users
  • 87 percent of in-home PC streaming comes from the top 20 percent

 

When it comes to ethnicity, the same principle applies

This 80-20 rule also applies when the survery reported viewing figures across different ethnicities, so this phenomenon cannot be attributed to just a specific segment of the population.

  • 92 percent of the viewing among Hispanics comes from the top 20 percent
  • 89 percent among Asian-Americans
  • 88 percent among African-Americans

Needless to say, in light of these results, we look forward to VIDGO contributing to the exponential growth of subscription services and the modernization of the entire industry, always striving to enhance the viewer’s experience.

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Source: Nielsen survey

 

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