UNITED KINGDOM â€“ Subscription video on demand (SVOD) is becoming the dominating trend in America, causing pay TV subscriptions to consistently decline.
For the longest time, pay TV subscriptions have always been at the top. However, subscription for the said service is beginning to decline with the popularity of and demand for subscription video.
Per Deloitteâ€™s Digital Media TrendsÂ Survey 12th edition, Americans watch video contents over 35 hours per week, which is nearly an equivalent of having a full-time job. As a result, pay TV subscriptions have diminished from 75% to 63%.
There is now an alarming change of trend making pay TV subscriptions potentially lose its top spot in the industry. Now, SVOD is taking nearly half of the video contents being watched. At 48%, consumersâ€™ transition is rapidly increasing, higher by 11% year over year.
Generation Z (people with ages 14 to 20), millennials (people with ages 21 to 34), and Generation X (people with ages 35 to 51) are becoming the helping factor with the changing trend.
With the innovation of how video content is now being delivered, America is undergoing a new phase of how video contents are being watched. The demand for high-quality original video content and video streaming continues to grow.
Deloitte vice chairman and US media and entertainment leader, Kevin Wescott, stated that consumers now have great expectations when it comes to freedom of choosing entertainment options and media.
Kevin also mentioned that high-quality original content and streaming services paved the way in monetizing the on-demand environment of 2018. Having over 200 subscription video service providers in the country is also helping the shift in how consumers watch video contents.
Also, according to the 12th edition of the Digital Media Trends Survey of Deloiite, there has been a 450% increase in video streaming service subscription. Americans now spend $2.1 billion for SVOD per month. With the rise in demand, this number will only continue to grow.