This week we discuss the factors affecting how many SVOD services people will have in their personal TV bundle. We also propose what that bundle will end up looking like.
Chapter 1: Cost constraints on SVOD subscriptions (2:00)
The head of CBS Interactive seems to think that people will subscribe to 10 SVOD services. For a decade or more, viewers have watched 17 to 20 TV channels. Does that mean they will watch the same number of SVOD services? We discuss how cost will probably limit the number of services we subscribe to much less than 17, and probably less than 10.
We also discuss what the impact of a worsening economy might be. Before, pay TV was relatively immune to downturns, as people trimmed other expenses and stayed home watching more TV. That might not be the case in the next downturn.
As well, the decision to subscribe to one service affects the decision to subscribe to another. With Disney and WarnerMedia entering the market, existing services could feel the pinch this holiday season.
In the discussion I mentioned that US streamers have 3.4 services on average. This data comes from the report Keep My Customer, available for free download today. You can also access the Hub data referenced in the discussion here.
Chapter 2: The impact of content overload (12:00)
A viewer subscribing to Netflix, Disney+, WarnerMedia, and Hulu has more content to watch than they have time for. I argue that this content overload will make it difficult for other SVOD services to get into someone’s personal bundle.
Chapter 3: FAST services will also limit subscriptions (13:40)
When someone is looking for something a little different from what their existing services bring, they will find a lot of quality content in free ad-supported TV services. Why subscribe to another service when you can enjoy a favorite show again or catch a movie you missed the first round?
With all the content that is currently available, Will wonders if there is too much money being invested in originals.
Chapter 4: The future composition of personal packages (18:30)
I suggest that people will have a handful of services in their base viewing package. They will also watch lots of free-ad-supported content. As well, they will swap in and out services that have a specific show or movie they really want to see.