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      Home News Analyst Reports

      Omdia data reveals changing trends in SVOD Stacking

      Staff Reporter by Staff Reporter
      January 29, 2024
      in Analyst Reports, International News, News
      Omdia data reveals changing trends in SVOD Stacking
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      Recent studies indicate a decline in SVOD stacking, while FAST viewership continues its upward trajectory.

      The landscape of the entertainment industry has been reshaped by the growing appetite for subscription streaming services, over the past decade. However, exclusive data from Omdia has indicated a notable transformation in the behaviour of consumers engaging with subscription video-on-demand (SVOD) services.

      Omdia’s data highlighted a significant shift in the way consumers subscribe to multiple streaming services. Traditionally, consumers would stack multiple subscriptions to access a broad spectrum of content. The new findings suggest a change in this behaviour, indicating a growing trend of consumers becoming more selective and adopting a focused approach to their streaming subscriptions.

      Maria Rua Aguete, Omdia Senior Research Director, discussed these emerging trends, noting that the countries experiencing a slowdown in the growth of streaming and studio services (AVOD and SVOD) are the US and Brazil. Aguete stated: “After over half a decade of steady growth, we’re observing a shift in how paid video services are consumed. The traditional model of stacking multiple paid services is losing ground. This is partly driven by the increasing popularity of free ad-supported television (FAST) channels, which are becoming a preferred choice for supplementary viewing.”

      In the US, the number of SVOD subscriptions per household, which approached 3.5 in April 2023, experienced a decline of over 10% to under three services by November 2023, as revealed by Omdia’s research.

      Consistent with Omdia’s forecasts, FAST continues to emerge as a prominent service in the US, with weekly users representing 46% of total video users. Brazil has also witnessed a significant rise in FAST viewership, with weekly users now constituting 36% of the video audience, marking a 4.5-fold increase from 2020.

      The UK, a key player in the FAST market, has experienced a surge in FAST viewers, now representing 21% of total video users.

      “The FAST channel market continues to witness strong growth in the UK, Canada, and Brazil, with revenues projected to reach $8bn by 2024. This poses both opportunities and challenges for service providers as they adapt to the changing landscape to keep up with evolving viewer demands,” concluded Rua Aguete. The evolving streaming landscape reflects a dynamic shift in consumer preferences, prompting industry players to adapt to these changing trends.

      Tags: FAST viewershipMaria Rua AgueteOmdiaSVODSVOD stackingSVOD subscriptions

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