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How SVOD Services Affect Pay TV

Over the years, the habits of TV viewers have drastically changed. It seems that every year, more and more viewers are abandoning their Pay TV subscriptions and opting for SVOD services that will give them their favorite content at the time they want to watch it.
The rising demand for SVOD services like Netflix, Hulu and Amazon video, which allow viewers to watch their favorite content whenever they want has risen to the question about what will be next for the video entertainment and whether the TV will still have a place in the future.

The latest report, released by Screenshotthe BI Intelligence, analyzes how the growth of SVOD services is affecting the Pay TV industry. They’ve analyzed the current state of the Pay TV industry and did a research on which demographics are more likely to abandon TV packages. The report also discusses the user base, original content offerings and subscription models of the major subscription streaming services lsuch as Netflix, Hulu and Amazon Video. And last but not least, the report also displays the way traditional Pay TV companies and premium channels like HBO and Showtime are dealing with the shift to digital viewing as well as the implication of their response for advertisers.


Here are some of the key findings:

  • Those abandoning pay-TV packages are divided into three main groups: cord-nevers, cord-cutters, and cord-shavers. Even though video streaming services are more common for younger viewers, an increasing portion of older subscribers is also abandoning their pay-TV packages. However, compared to the elderly viewers’ audience, the younger viewers watch four times more video content online.
  • Netflix is the largest SVOD service
  • Amazon is trying to compete with Netflix and came in second
  • Hulu is the third-largest SVOD service, but the only one to offer ad-supported membership tiers.
  • Now, Pay TV companies have started offering subscribers “skinny bundles” and their own streaming services.

In full, the report:

  • Displays the fall of the traditional TV package and the rise of broadband only cable subscriptions.
  • Portrays the different types of viewers that are abandoning pay-TV: cord-cutters, cord-shavers, and cord-nevers.
  • Analyzes the leading SVOD services including Netflix, Amazon Prime Video, Hulu, and premium channel offerings from HBO and Showtime.
  • Explains the various ways that pay-TV companies are responding to the rise of SVOD services, notably skinny bundles and standalone streaming services.
  • Considers what the migration to SVOD services means to marketers.

You can find the full report, here.

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