Omdia reveals decline of SVOD ‘stacking’, with FAST viewership rising

Omdia has reported the total of 3.5 SVOD subscriptions per household in the US recorded in April 2023, fell by more than 10% to under three services by November 2023.

Source: Omdia

DTVE’s sister market research firm revealed there has been a dramatic change in the way consumers are subscribing to multiple streaming services. Previously, consumers would often stack multiple subscriptions to have access to a wider range of content. However, Omdia’s new data suggests consumers are becoming more selective when choosing streaming subscriptions.

FAST has remained on track to become a prominent service in the US, with weekly users of these channels representing 46% of total video users, according to Omdia. Meanwhile Brazil has also seen a significant rise in FAST viewership, with weekly users now accounting for 36% of the video audience, a 4.5-fold increase from 2020.

Maria Rua Aguete, Omdia’s senior research director said: “After over half a decade of steady growth, we’re observing a shift in how paid video services are consumed. The traditional model of stacking multiple paid services is losing ground. This is partly driven by the increasing popularity of free ad-supported television (FAST) channels, which are becoming a preferred choice for supplementary viewing.”

She added,“The FAST channel market continues to witness strong growth in the UK, Canada, and Brazil, with revenues projected to reach $8bn by 2024. This poses both opportunities and challenges for service providers as they adapt to the changing landscape to keep up with evolving viewer demands.”