We recently conducted a study on streaming video providers in order to uncover any interesting data and insights within the industry that we could use to create an infographic as a way to share this data with various news organizations.
Unsurprisingly, we found that Netflix is the dominant force among streaming video providers. It has the greatest percentage of all users, the greatest percentage of exclusive users, and the highest retention rate.
Among all streaming video users, 89% subscribe to Netflix (see infographic below, “Recommended For You”), though most subscribe to other streaming services as well. Of this 89%, 75% use Netflix and at least one other streaming video provider. Streaming video consumers use an average of 2.5 streaming video services.
“On average, consumers use between two and three streaming services, and one of them is almost always Netflix,” said Jonathan Pirc, Founder and Managing Partner of Lab42. “Even with multiple streaming services available, Netflix has clearly staked out the dominant position, with nearly 9 out of 10 American streamers using Netflix. Even when consumers use a variety of streaming services, Netflix remains the most popular. It’s a testament to not only being one of the first to market but also their innovation and investment in original content.”
A smaller percentage of consumers use only one streaming video provider. Among these, 25% use Netflix exclusively, with the next most popular, Amazon Prime Video, used by 6% of single service subscribers.
“A smaller number of consumers use only a single streaming video service,” continued Pirc. “These consumers still prefer Netflix by a wide margin, with four times the number having exclusively Netflix, compared to the next two most popular services, Amazon Prime Video and HBO GO.”
Netflix has the highest renewal rate, at 93%. Amazon Prime Video and Hulu are the next highest at 75% and 64%, respectively.
“Many factors contribute to Netflix’s astronomical renewal rate,” added Pirc. “These include an increasing number of cord-cutters, its hyper-customized content and suggestions, which helps to increase engagement and reduce abandonment, and a significant investment in original content. Netflix’s competitors have an uphill battle to take market share from the current industry leader. Also, while these renewal rates are all impressive, we should note we can’t directly compare Amazon Prime Video with other services, as it comes bundled with Amazon Prime and is not a standalone service.”
