Full stream ahead: how SVoD services are changing to meet consumer demand
As SVoD platforms continue to rival pay TV
operators in Europe they are using their wealth of user data to develop content
driven by subscribers’ preferences. According to Ampere’s consumer
polling, the number of SVoD-only homes in the EU big five markets has tripled since
Q3 2015, whereas pay TV-only households have decreased by a third. For
SVoD services to continue to grow, they need to develop content catalogues that
appeal to pay TV-only households.
Respondents taking at least one SVoD service, but
not taking pay TV tend to favour sci-fi and fantasy and action and adventure
content. In contrast, documentary content is favoured by pay TV-only
consumers. These genre preferences are being recognised by SVoD services
and, consequently, content catalogues are changing to reflect the shifting
strategies of SVoD services.
Amongst pay TV consumers across the big 5 European
markets, 12% of consumers chose sport as their overall favourite genre (when
forced to choose one), and 45% of consumers selected it as a genre they
enjoy. Online video services have traditionally stayed away from sports
for a number of reasons. Firstly, prices for popular sports rights have
been beyond their budgets and, secondly, online services such as Netflix and
Amazon did not stream live due to technology constraints. However, with higher
budgets and more mature live streaming technology, sport is a key genre that
online services will need to invest in. Existing SVoD services such as
Amazon Prime, and new sports-specific services such as DAZN are beginning to invest in
sports. As more sports deals are made with online players, we are likely to see more pay
TV-only households subscribe to SVoD services.

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