More and more consumers today are cutting the cord with their cable/satellite television providers and making the switch over to subscription video on demand services, such as Hulu, Netflix and/or Amazon Prime Video. The number of U.S. cable consumers cancelling their services is expected to grow by 32.8% in 2018, increasing by more than 33 million over the past year. In contrast, subscription video on demand services are expected to see a total global revenue increase, from $44 billion in 2017 to $69 billion by 2023. So, what is inspiring so many consumers to make the leap from traditional television to SVOD?
Top 5 Reasons Why More Consumers are Drawn to the Subscription Model:
Content is readily accessible – available on demand, 24 hours a day. Several services offer the option to download video and watch it offline, which is great for people on the road that don’t always have access to an internet connection. Content is available across multiple devices and apps, so you can watch wherever is most convenient for you. Auto-pay can also be set up, so payment is automatically withdrawn from the subscribers account – eliminating cumbersome billing processes.
Many SVOD services offer free trials, allowing users to try out their platform before committing to a monthly/annual subscription. Subscription video packages are also typically much cheaper per month than cable television packages. According to Leichtman Research Group, cable television companies report average spending per subscriber of about $85 a month, while the average among satellite TV providers tops $100 a month. SVOD services like Netflix and Hulu, on the other hand, start at only $7.99 per month.
Subscription video services make it simple for subscribers to control their membership online with just a single click. They eliminate the need for frustrating and time-consuming calls with customer service representatives and enable users to easily sign up for a membership or cancel whenever they like. Subscribers can also easily upgrade their package online and add channels/networks to their monthly subscription. For example, with Hulu you can upgrade your subscription to include Showtime, and Prime Video allows users to add on Starz.
4. Video Library
Many SVOD platforms provide subscribers with extensive video libraries, and an abundance of diverse content to choose from. They also regularly update their content, in order to keep their selection new and fresh for their viewers. Video is categorized by genre, popularity, release date, etc., making it easy to find exactly what you’re looking for.
5. Variety of Options
While there are several SVOD platforms offering users a large collection of different videos to choose from – like Netflix, Hulu or Amazon Video – there are also many niche channels for subscribers looking for video on a very specific topic (Ex: Fitness, Cooking, Education, Sports). Subscribers are able to select the channels that cater best to their unique interests and hobbies.
Take a look at these 10 Popular SVOD Channels in Unique Niches!
SVOD Offers More to Consumers
There are several different factors driving consumers to cut ties with their traditional cable television providers and make the switch to streaming video. SVOD channels offer much more to consumers and are designed to address their unique wants and needs. SVOD organizations continually enhance their video viewing experience for their users, to make it as seamless and user-friendly as possible.
Interested in launching your own subscription-based platform for your videos? Contact Intelivideo today to learn how we can help you!