Streaming skeptics have long-posited that consumers would have a strict limit on the number of services for which they would be willing to sign up. According to that logic, niche streamers who cater to specific audiences or programming genres should have a difficult time thriving.
But the Specialty SVOD category has seen robust growth in the past several years, outpacing Premium SVOD, albeit off a smaller base. Several market factors drive this. First, as more households cut the linear TV cord and gain comfort with streaming as their primary mode of video viewing, they seek out a broader set of brands. Second, as the largest Premium streamers focus on profitability, they are deploying “fewer, bigger” programming strategies which focus on shows that appeal to the masses. This leaves an opening for Specialty players who have a tight focus on a specific genre or audience. Third, Amazon Channels has been uniquely successful at driving discovery of smaller streaming services, with a user interface and experience that emphasizes individual shows, no matter which service they come from.
In this report, Antenna focuses on three key consumer behavior areas in Specialty SVOD to further contextualize the category’s growth:
