SVOD drives connected device ownership, usage in U.S. homes, Nielsen says

Households that have at least one SVOD (subscription video on demand) service, like Netflix (NASDAQ: NFLX), Amazon (NASDAQ: AMZN) Prime or Hulu, are above-average across the board when it comes to ownership of streaming-capable devices, PCs, tablets, and HD or smart TVs, according to Nielsen's latest audience report.

"Homes with subscription streaming services have both a penchant for TV-connected technology and, perhaps more importantly, display the greatest usage of these devices--nearly 50 minutes more than a typical TV home," the report noted, adding that these homes average 20 minutes more per day in using a streaming device like Roku than other households, and 10 minutes more per day watching time-shifted television.

The data suggests that as more broadband-connected households become familiar with online video services and devices, they're not necessarily eschewing pay-TV for these items. Instead, they're making them part of an expanded overall viewing experience.

Nielsen SVOD homes

(Source: Nielsen Q4 Total Audience Report)

But it's the attraction of SVOD that makes the numbers interesting.

"Convenience remains the number one reason people cite for using SVOD services, though the number saying this has decreased slightly from Q4 2013 (59.2% to 57%.)" said Colin Dixon in a post on his nScreenMedia blog discussing the Nielsen figures.

The increasing amount of mobile devices being used for streaming was another factor, he noted. "The ability to watch on the smartphone is cited by 15.8%, increasing from 12.7% a year earlier. And tablet access is also cited more, increasing from 21.4% to 24.3%."

Even with viewers consuming more entertainment than ever--both via traditional television and increasingly via over-the-top services--Nielsen notes that the online video environment remains a risky bet for all but the biggest providers.

"With continued and accelerating fragmentation, the risks and rewards are potentially high, and the ability to stake a claim in the expanding industry pie is central to companies' growth," the report said.

For more:
- see the report
- see nScreenMedia's blog post

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