Major SVODs combined now surpass live TV as the "first place to turn to watch,” according to Hub Entertainment Research's latest "Decoding the Default." However, the report showed that, while Netflix may be a streaming leader, other streaming services and even traditional cable are still default choices for many viewers. In a landscape of endless viewing choices, the services that viewers turn to first are the ones that consumers engage with most and are least likely to cancel.
Live TV (via cable, vMVPD or antenna) is still a default destination for 38% of viewers. However, for the first time in five years of tracking, the combined "Big 5" SVODs (Netflix, Prime Video Disney+, Hulu, and Max) - which do not offer live TV - are more likely to be the "first stop" for 46% of viewers.
Netflix is the top SVOD default, on par with cable TV as a "first stop" to watch. 26% say that Netflix is the first place they turn to when they want to watch something, on par with the 26% of viewers who say traditional cable (excluding vMVPD and antenna) is their default source.
42% of viewers who default to a major SVOD say that "favorite shows" connect them to that service. In contrast, live programming (sports, news) continues to make traditional cable a default source, while those who default to a free ad-supported (FAST) service say that "variety" is the big draw. While sports rights are migrating to streamers, the current hold-up of Venu sports and other challenges in finding sports content online will continue to challenge viewers juggling both traditional cable and online options.
Loyalty to SVODs is notably stronger compared to traditional MVPD sources. Default usage helps stickiness, but only so much: when viewers are asked to choose a service to drop, live TV from MVPD does not hold up as well as streaming services. Even among devoted cable viewers who say it is their "first choice" for viewing, they are less loyal to that service (24% say they will drop), compared to SVOD "default" users (3%-13%).
"The first stop people turn to watch will always be the one that has the highest loyalty, and favorite shows can deepen those loyalties across streamers," said Jason Platt Zolov, Senior Consultant for Hub. “While football and the election may help keep cable TV viewers watching this fall, we can expect a quicker abandonment of cable as live sports becomes more easily available online," he concluded.