Netflix still the dominant streaming provider, according to latest NPD report

No, you can't hold the Bluths responsible for this -- not yet, anyway. The NPD Group's just released its latest figures for streaming video on demand (SVOD) in Q1 2013 and, unsurprisingly, Netflix still reigns supreme. According to the data, it's the many hours of available ad-free boob tube (read: TV) programming that's propelling SVOD viewership, so much so that it's increased by 34 percent year-over-year. Break that down amongst SVOD providers and you'll find 90 percent of that viewing pie belongs to (wait for it!)... Netflix, which actually represents a 4-percent drop from the same quarter last year.

As for the general state of SVOD, the majority of eyeballs still turn to the television set for a streaming fix, with that device commanding an 80 percent share. And, yes, it's once again Netflix that garners the most use here (nearly 90 percent), but rival streaming services Hulu Plus and Amazon Prime are making gains at 10 and 2 percent, respectively. Although there does appear to be a minor chink in Reed Hastings' red armor. These latest numbers also show streaming subs branching out from a sole dependence on Netflix, with 10 percent adding Amazon Prime to the mix and 8 percent doubling down with Netflix and Hulu. Translation: they couldn't find what they wanted on Netflix. We've all been there.

Show full PR text

The NPD Group: As TV Viewing Drives Subscription Video-On-Demand, Netflix Dominates, but Hulu Plus and Amazon Gain

Netflix is the primary choice for subscription video-on-demand (SVOD) subscribers, but more consumers are trying alternatives.

PORT WASHINGTON, NEW YORK, June 4, 2013 – According to The NPD Group, a global information company, growth in watching television programming is driving subscription video-on-demand (SVOD) viewership, and Netflix continues to clearly dominate the category. According to NPD's VideoWatch VOD report, in the first quarter (Q1) of 2013 the number of viewers watching television shows using SVOD services increased 34 percent, compared to the same quarter year-ago. NPD's VideoWatch Digital tracking shows Netflix dominating the sector, with a 90 percent share of video-streaming units during Q1 2013, which was 4 percentage points lower than last year.

In the TV category alone, which accounts for 80 percent of streams, Netflix holds an 89 percent share. HuluPlus showed healthy growth in 2013, with 10 percent of TV streams in Q1, while Amazon Prime accounts for just 2 percent of the overall TV units streamed.

"There's no doubt that Netflix is driving the growth in SVOD, particularly with increased attention to television programming," said Russ Crupnick, senior vice president of industry analysis at NPD. "We are also seeing good gains in the streaming numbers from Hulu Plus and Amazon Prime, and while neither pose an immediate threat to Netflix it is interesting to see which services later adopters will try."

In Q1 2012, 76 percent of SVOD subscribers streamed only from Netflix. In Q1 2013 that figure fell to 67 percent, while 10 percent of SVOD streamers used both Netflix and Amazon Prime, and 8 percent used both Netflix and Hulu.

"Since its launch, Netflix Watch Instantly has enjoyed a virtual monopoly on the SVOD market, and the company still has a quite comfortable market-share lead," Crupnick said. "While Hulu Plus and Amazon both still have a long way to go before they come close to catching Netflix, we are beginning to see increasing trial of these services, even among some Netflix users."

Data note: Information in this press release was derived from NPD's "VideoWatch VOD" report and the "VideoWatch Digital," consumer tracker, which is based on completed surveys from 46,403 SVOD subscribers. Data was weighted to represent U.S. population of Internet users (age 13 and older).