Streaming video – the more the merrier says Roy Morgan

More Kiwis flock to multiple streaming video services

Data from Roy Morgan Research show an increasing number of New Zealanders not settling for just one streaming video on demand service, such as Netflix or Spark’s Lightbox, but opting for two or more.

The research firm has Netflix well in the lead and has advised #2 SVOD service, Lightbox, to target Netflix customers saying they may well be amenable to a second service. It suggests the two smaller players in the market – Quickflix and Neon should targe those who have demonstrated their appetite for SVOD by taking both Netflix and Lightbox.

It attributed this appetite for multiple services to subscribers exhausting a single provider’s catalogue, saying “What at first seems like a never-ending catalogue might seem a tad incomplete after a few months of binge-watching.”

Roy Morgan’s industry communications director, Norman Morris, said: “To build subscription numbers, Lightbox should focus on targeting the 700,000 Netflix subscribers who could be on the lookout for their second SVOD service in 2017.

“Neon and Quickflix should go further still, and hone their core target market this year down to the 337,000 Kiwis who have already demonstrated their love of SVOD by subscribing to both Netflix and Lightbox.”

He added: “Half a million more Kiwis added a SVOD service to their home entertainment mix in 2016. The market still has plenty of room to grow by reaching totally new SVOD users, however much of each provider’s own gains are actually their competitors’ customers adding on second and subsequent services.”

According to Roy Morgan, over a million New Zealanders now have Netflix—but Lightbox is the faster growing SVOD provider. “By the end of 2016, an estimated 1,066,000 New Zealanders aged 14+ subscribed to Netflix—up 56 percent compared with 684,000 in December 2015,” it said. “However the number of Kiwis with Lightbox more than doubled over the period, from 285,000 to 630,000.”

Between them, Neon and Quickflix only reached around 127,000 Kiwis in the December 2016 quarter. Altogether 1.4 million Kiwis aged 14+ (37 percent) have one or more of these four SVOD services in the home, up from 900,000 at the close of 2015. Over one in four subscribers now have two or more of these SVOD services in the home, up from one in six a year earlier.

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