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  Pay TV, SVoD

  Netflix, Amazon

SVoD services - from complementary to competitive

In developed markets SVoD platforms have become viable alternatives to traditional pay TV, with a growing number of households becoming SVoD-only. Ampere's consumer research shows that over the last two and a half years, in 10 developed markets, the number of SVoD-only households (those households either with just an SVoD subscription, or with an SVoD subscription and a free TV service) have risen from 5% of internet users in Q3 2015 to 18% as of Q1 2018. Over the same period, pay TV-only households have decreased from 47% to 25% of internet users. Consumers in developed markets are also increasingly supplementing pay TV with SVoD, with households subscribing to both types of service growing from 24% to 40% over the same period.

SVoD services have evolved in a way that positions them as either a complementary service or the principle TV service in the household - depending on the household in question. Whilst the combination of pay TV and SVoD makes up the largest portion of the market, SVoD-only homes have grown significantly and at a greater rate. Substantial investment in content by companies including Netflix and Amazon has been essential for this. Continued investment and further catalogue expansion strengthens the SVoD proposition and increases the likelihood that consumers of the future will consider SVoD a suitable alternative to a pay TV service.