26 NOV 2021

65% of consumers watch two or more hours of paid-for content daily

Over half of internet-connected consumers claimed to have used pay TV or video streaming services “in the last week”. Of these, 65% said they watch two or more hours of paid-for streamed content daily, according to Kantar.

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Over half of internet-connected consumers claimed to have used pay TV or video streaming services “in the last week”. Of these, almost two-thirds (65%) said they watch two or more hours of paid-for streamed content daily, according to Kantar’s “TGI Global Quick View” study of consumers in 25 markets.

In 2020, Kantar estimated that $61 billion in annual investment was made in streaming subscriptions and $173 billion in pay TV. This was supported by significant spend in film and TV content, which reached $220 billion globally and set a new record for what was a transformative year. Now, factors in ad-funded VOD expenditure for TV episodes and movies, as well as forecasts, point towards triple-digit growth over the next five years, reaching $66 billion across 138 countries.

“Some wonder how much further this can go, though, and at which point consumer choice becomes overwhelming. Yet talking about ‘subscription fatigue’ doesn’t make it true – satisfaction with value for money in video streaming has actually risen amongst US subscribers from 58% to 61% over the year, despite increased actual spend,”  the report says.

In last year’s report Kantar predicted the increased importance of aggregators, and this has played out during the year. With the number of SVOD launches on the rise, smaller services do not feel confident enough to go it alone, and an increasing number are partnering with established cable and satellite TV operators to secure guaranteed subscribers at launch.

At the same time, this has given a new-found confidence to broadcasters and platform operators previously under pressure to maintain growth. For example, Sky has signed up Peacock, Paramount+ and Discovery+ as part of its launch strategies, cementing its power in Europe. “Viewers are on board with this trend and want to be able to access their content through one unified system,”  the report assures.

Looking ahead, according to Kantar, SVOD will no longer be the only jewel in the media crown. “The subscription model is losing its power to drive long-term growth. This is because competition has grown incredibly fierce, there’s more competition for the same content, and prices are increasing amongst some SVOD platforms. In response, expect business models to diversify further in 2022, with a sole subscription offering becoming scarce,”  the researcher said.