Do American TV Viewers Prefer Streaming Over Transactional VOD?

  • Online video subscribers of Netflix and Amazon Prime paid almost $50 on average for video subscriptions during a recent six-month period.
  • According to new research from Parks Associates, subscribers spent less than half of that amount on a la carte video purchases.
  • The number of movie and TV show downloads declined 56 percent from 2009 to 2010, and movie rental downloads decreased 70 percent.
  • “Based on the reported usage of video download services by U.S. survey respondents in Q4, consumer spending on a la carte video during a six-month period ranged from $12 to $26,” reports Home Media Magazine. “Comparable spending on video services subscriptions during that same period reached at least $48 per household.”
  • “The all-you-can-eat-style subscription approach taken by Netflix has proven successful in the U.S. market,” Parks said in its report. “It has helped to drive up consumption — and spending — for online video.”
  • Netflix ended the most recent fiscal quarter with more than 25 million subscribers in North America.

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