As video-on-demand streaming services like Netflix continue to gain popularity, premium TV channels are seeing a decline in household subscriptions.
NPD Group's State of SVOD report found that HBO, Showtime, and other premium networks penetrated 32% of homes in the U.S. as of August 2013, down from 38% two years prior. During this same period, household subscriptions to on-demand streaming services rose to 27% from 23%. This graph is a bit foreboding:
The firm says Netflix continues to lead by subscriptions, but Hulu Plus and Amazon Prime are seeing fast growth with consumers adding on secondary services. Meanwhile, digital video transactions, which NPD classifies as purchases and individual paid rentals, reached 70% of home-video transaction in 2013, up 3 percentage points from the year prior.
Update: NPD has temporarily pulled the video report from its website as premium networks HBO, Showtime, and Starz dispute its accuracy. HBO says it added 1.9 million subscribers in 2012 and expects comparable growth in 2013. Showtime notes it has grown its subscriber base by 1 million households annually in six of the last seven years, and Starz says it added 1.2 million subscribers in the last 12 months.