New Study: Streaming Services Need Inclusive Content to Differentiate, Bring in Diverse Audiences
When streaming services first launched, delivering content that appealed to a large audience made sense. Now, consumers are left with a difficult choice when subscribing to various services. A recent study shows that consumers are subscribed to an average of 8.8 streaming services. They simply can’t subscribe to all of them, so companies must find a way to differentiate themselves from one another. Creating content for all subscribers to enjoy isn’t working anymore.
A new study from Nielsen shows that streaming companies are likely to try to connect with specific audiences now. Instead of trying to create content that appeals to all subscribers, companies can narrow their focus to certain demographics.
According to the study, “Amid the sea of growing choice, content becomes a key differentiator, especially when publishers identify needs that are not being met.” This leaves streaming companies with an opportunity to deliver more diverse content to racially and ethnically diverse viewers.
Subscription video-on-demand services (SVOD) are the most popular among streaming services. In June 2021, 51% of the minutes viewed were on SVOD. Ad-supported video-on-demand (AVOD), multichannel video programming distributors (MVPDs), and virtual MVPDs (vMVPDs) are growing in popularity, though. They accounted for 36% of the minutes viewed in June 2021, and more consumers continue to show interest in ad-supported services because they don’t mind ads, especially with free or discounted subscriptions.
AVOD services are seeing a more diverse audience with Black audiences accounting for 24% of minutes streamed in June. Black audiences streamed Tubi the most at 39% of minutes viewed and Pluto TV followed close behind at 36%. On the other hand, linear TV accounted for 17% of the minutes watched.
Nielsen’s study also shows that Hispanic viewers spend more time with streaming services than traditional TV. While Hispanic audiences use Pluto TV, Tubi, and other platforms, YouTube made up 21% of viewing minutes in June.
In addition to offering ethnically and racially diverse content, streaming companies should also consider the ages of their users. People of all ages are cutting the cord and beginning to use streaming services instead. The streaming services consumers are using varies by age. Disney+ features a library filled with animated content, and 44% of the minutes streamed on the platform are by users ages 2 to 17, according to Nielsen’s study.
60% of the minutes viewed on linear TV are by audiences over the age of 55. As younger audiences watch Disney+ and other streaming services, only 7% of minutes viewed on linear TV are from consumers ages 2 to 17. Now, streaming services must determine how they will bring inclusive content to their diverse audiences.