High Marks or Just Passing? A Consumer Report Card for Big-3 SVOD and Pay-TV
The US SVOD market has long been dominated by three operators: Netflix, Amazon Prime Video, and Hulu. Little has changed in this regard during the last five years, and we do not expect any significant shift in the next five years. Direct-to-consumer brands will undoubtedly become more popular during this period, but few will attain (much less retain) the penetration of Big-3 SVOD.Their actions—whether altering prices, increasing investments in originals, spending $25 million to chase an Oscar, adding an ad-based tier—will impact all video creators, aggregators, and operators. Thus, paying close attention to how consumers grade Big-3 SVOD providers, and how tolerant their users are to changes, is of great relevance.
This report explores:
- Service tenure and stickiness of the Big 3 and Pay-TV;
- Perceptions of service, including content and cost;
- Impact of price increases; and
- Importance of originals.
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