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Will More Entrants in the Streaming Market Change User Behavior?

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US SVOD households

According to eMarketer, 34% of Americans are ready to increase their number of subscriptions in the future.

The average number of SVOD (subscription video-on-demand) services among US households plateaued last year, according to the latest report by eMarketer, which cited Ampere Analysis.

The average was 2.8 SVOD services per household during the third quarter of 2018—unchanged from the same quarter in 2017. However, the number increased from 1.7 SVOD services per household in the third quarter of 2015.

As more video subscription services like Apple and Disney enter the US market later this year, subscribers probably won’t increase their subscription services.

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Streaming services 

eMarketer pointed out that video subscription companies will likely see a higher churn in the future due to increased competition. Viewers are able to opt out of services in favor of a new one, which could be cheaper due to promotional prices.

Even though the average number of SVOD services per household remains constant, Netflix (NFLX) shouldn’t fall out of favor. Most Americans still view Netflix as a major content provider.

Netflix expects its net paid subscriber additions for the current quarter to be as low as 300,000 in the United States—down from the 1.74 million paid subscribers it added in the United States in the first quarter.

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