Study says OTT vs. TV not a zero-sum game

A new report from MTM found 70% of SVOD users also have a traditional TV sub, with Crave and Amazon gaining share of household penetration.
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The latest report from the Media Technology Monitor (MTM) shows that when it comes to OTT and traditional television, Canadians might not see it as an either/or proposition.

The MTM report sought to uncover the overall media consumption habits of those who watch SVOD and OTT services. The organization surveyed 4,000 Anglophone Canadians through a mixed-method approach in the spring of 2017.

It found that although Netflix is dominant among the streaming services (its penetration rate in Canada is now at 53%, up from 50% in spring 2016, according to MTM), it’s not necessarily cannibalizing traditional television. More than 70% of OTT subscribers also subscribe to a traditional TV service, such as cable, satellite or fibre optic.

In fact, OTT subscribers are only slightly less likely to subscribe to traditional television. Seventy-one per cent of OTT subscribers have a TV subscription versus 75% of non-OTT users.

Netflix, which hit the Canadian market in 2011, has enough of a head start on its major Canadian competitors to maintain a healthy lead. Bell Media’s CraveTV, now two years old, has a 9% penetration rate, up from 5% last year. Amazon Prime Video, which launched in Canada last year, has a 5% penetration rate.

Most Canadians who subscribe to any OTT also subscribe to Netflix — only 4% of respondents said they subscribe to “only” Netflix competitors, while 13% of Canadians subscribe to Netflix and one or more other OTTs.

The study found Netflix and Amazon Prime subscribers tend to skew younger that other SVOD audiences – 39% of Netflix subscribers are between 18 and 34, as are 49% of Amazon Prime subscribers. CraveTV and Sportsnet Now subscribers tend to have similar age balances to traditional TV, with 29% between 18 and 34.

From Media in Canada 

Image: Shutterstock 

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