There’s a reason Netflix accounts for almost one-third of North American peak downstream internet traffic. According to new data released by the NPD Group, TV programming accounts for 80% of subscription video-on-demand (SVOD) streams, and Netflix Watch Instantly dominates that market to the tune of 89% market share in Q1. There are signs that the TV programming market may slowly be fragmenting, though: Netflix’s share was down 4% points year-over-year, with that decline coming mostly at the hands of Hulu Plus, which increased its share from 7% to 10%. Amazon Prime accounted for 2% of the overall TV units streamed in Q1 2013, up 1% point from the prior year.
These services are competing for a growing market, with the number of viewers watching TV shows using SVOD services rising by 34% year-over-year in Q1, according to the researchers.
Back in November 2012, ChangeWave Research also noted that other services were eating away at Netflix’s dominant position in the paid alternative TV market.
Looking at the overall SVOD market (movies and TV), the NPD data shows that Netflix’s share stood at 90% in Q1, down from 94% a year earlier. Netflix-only streamers also fell from 76% of SVOD subscribers in Q1 2012 to 67% in Q1 2013. As of Q1 2013, 10% of SVOD subscribers used Netflix and Amazon Prime, and 8% used both Netflix and Hulu Plus.
About the Data: The data is gleaned from NPD’s “VideoWatch VOD” report and the “VideoWatch Digital” consumer tracker, which is based on completed surveys from 46,403 SVOD subscribers. The data was weighted to represent the US population of internet users aged 13 and older.