Video Consumers Use Multiple Services
CIRP analyzed which "baskets" of paid on-demand video services consumers used in the April-December 2014 period. CIRP finds that only 25% of paid on-demand video consumers use only a single on-demand video provider, while 50% use three or more paid video-on-demand services (Chart 1).
On a quarterly basis, CIRP surveys consumers that used at least one of ten on-demand video content services at least once in the three months preceding the survey. The services include Netflix, Hulu Plus, HBO Go, iTunes, cable and satellite paid on-demand, Redbox and other disk rental, and Amazon Prime and Amazon Instant Video.
CIRP differentiates between subscription services, where customers pay a monthly or annual flat fee for unlimited viewing, and "per use" services, where videos are rented or purchased on a per title basis. Among subscription services, 52% of consumers have two or more subscriptions (Chart 2). Among per-use services, 55% of consumers use two or more services (Chart 3).
Consumers need more than one on-demand service, and even more than one subscription or per-use service. No single service meets all of a consumer's needs, so they tend to create a 'market basket' that combines services.
CIRP analyzed which services consumers use. Netflix and Redbox have the largest percentage of consumers that use them, with 61% of consumers using Netflix and 49% using Redbox (Table 1). For Netflix, 77% of its subscribers also have at least one per-use service, and 74% have at least one other subscription service. For Redbox, 73% of its users also have at least one subscription service, and 67% have use at least one other per-use service.
No one service truly dominates. While Netflix and Redbox each have the largest penetration among subscription and per-use services, even their customers use other services extensively. Among Amazon Amazon Instant Video customers, while 95% have a subscription service, most use at least Amazon Prime as that service.
CIRP bases this analysis on its quarterly surveys of US on-demand video customers. This analysis is based on 1,500 U..S on-demand video customers from April-December 2014. For additional information, please contact CIRP.