With nearly two-thirds of American viewers now using a subscription video on demand (SVOD) service, the market is primed for a different way to watch TV. The impact and opportunities are immense, especially as broadcasters create auxiliary applications for ATSC 3.0 services.
As the recent IBM Cloud Video report Everybody Wants to Rule the Streaming World emphasized, SVOD has reshaped the way we enjoy television. It notes that rather than spurring cord-cutting, SVOD options such as Netflix and Amazon Prime have added to the smorgasbord of video content we already enjoy.
NEW CONSUMER BEHAVIOR
The study from IBM's ClearLeap unit is one of several research evaluations during the past few months that affirm that viewers have embraced SVOD and over-the-top (OTT) streaming video programs. Even with perceived problems such as high costs and sometimes-inferior video quality, the ClearLeap study explains that SVOD has sparked new consumer behaviors, such as bingeing, which will affect future video distribution strategies.
The implication: infrastructure needs to be built to handle these viewing preferences.
SVOD services have been adopted by U.S. consumers faster than any other pay media service, ClearLeap said. Even more important than the 63 percent of consumers who spend a significant amount of viewing time with them... nearly half of those with SVOD and pay television watch their streaming services as much as, or more than, cable.
ClearLeap's report, based on more than 1,000 consumer interviews, acknowledged that Netflix is overwhelmingly responsible for the intense SVOD viewing. But the study pointed to the growth of other existing services, especially Amazon Prime and Hulu, and it augurs opportunities for future newcomers to enter this realm.
Fig. 1 (Photo credit: IBM Cloud Video)
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With nearly two-thirds of American viewers now using a subscription video on demand (SVOD) service, the market is primed for a different way to watch TV. The impact and opportunities are immense, especially as broadcasters create auxiliary applications for ATSC 3.0 services. 
