Consumers Embrace SVOD Catalogs and Transactional VOD as Pandemic Continues – Media Play News

Erik Gruenwedel

As the coronavirus pandemic continues, leading to disruptions in the distribution of traditional entertainment such as movie theatres, subscription video-on-demand has cemented its position as a consumer favorite in the entertainment landscape, according to new data. from Futuresource Consulting.

Based on surveys of over 20,000 respondents in the US, Canada, UK, Germany, France, Italy, Spain, Sweden, Australia and Japan, Futuresource , based in London, has seen a marked increase in on-demand transactional digital movie purchases. good.

“There is no doubt that recently launched services like Disney+ have driven both usage and adoption of SVOD,” senior analyst David Sidebottom said in a statement. “However, it is the growth of industry stalwarts Netflix and Amazon Prime Video that are driving SVOD’s overall reach.”

The report suggests a 3% to 4% increase in SVOD viewing as a proportion of total video consumption in 2020 compared to 2019. In the US, SVOD now accounts for more than one in four hours of viewing, primarily due to under 45s. . In addition to SVOD, many European markets have also seen an increase in free-to-air TV consumption, highlighting its continued importance, particularly in times of uncertainty.

That said, Netflix, Prime Video, and Disney+ continue to be the trendsetters, with the latter helping drive new levels of OTT video service stacking.

“Our research shows that over 90% of Disney+ subscribers are existing Netflix users, adding a new layer of growth to the SVOD environment,” Sidebottom said.

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Meanwhile, purchases and rentals of digital movies and TV shows continue to gain momentum. In the United States, nearly 33% of respondents had purchased or rented a movie or digital TV show from mid-March through July. The results show that VOD rentals are back in the spotlight, with three-quarters of respondents renting a digital movie.

Most notably, Futuresource found that more than 20% of respondents buying or renting digital movies and TV shows were new consumers, in addition to those revisiting transactional VOD for the first time in a long time.

“This again underscores how much consumer behavior has changed due to market conditions, helping to expand the reach of these categories,” Sidebottom wrote.

Indeed, with few new releases in theaters or on home video, consumers are embracing library titles. Monthly catalog sales continue to grow, and more than 80% of digital movie rental transactions were for a title that was more than six months old. The survey results suggest that sales and rentals of catalog digital movies were generally driven by emotional impulses, such as wanting to watch a favorite movie or feel-good movie, either to get away from it all or simply to sheer nostalgia.

“The industry must now turn to strategies that keep consumers engaged in both SVOD and transactional digital video,” Sidebottom said. “By 2021, it’s about maintaining the momentum created by confinement and social distancing measures.”