A survey of around 7500 households in the U.S. having Internet access conducted by the NPD Group has found that subscription video-on-demand (SVOD) services like Netflix, Amazon and Hulu Plus have been rising consistently for the past two years, while premium channels like HBO, Showtime and Starz have seen a steady decline in their subscriptions.
While Netflix rules the roost due to its popularity of original content, Amazon Instant Video and Hulu Plus are also finding favour in American households. Though the study does not pinpoint the cause-and-effect between the rise of SVOD services against the decline of premium channel subscriptions, Rus Crupnick, Senior Vice President of the NPD Group feels that the shift in consumer behaviour maybe because viewers consider SVOD to be an adequate replacement for other premium channels.
The other reason he cites maybe due to the economy making consumers view cable TV as pricey and SVOD as the right way to economize on their expenses and time. However, some studies have found that Netflix is a complimentary service to households who continue to subscribe to premium television channels.