Multihoming In The “At Home” Era
As consumers work, socialize, and stream from home, they are reaping the benefits of multiple tech services at once, rather than choosing between them. Multihoming, or switching between platforms, has become even more pronounced in 2020. As competition between platforms stiffens and new entrants become commonplace, consumers are coming out on top. Here’s what you need to know about multihoming in the “at home” era:
— Thanks to multihoming, new entrants complement and compete with existing players.
— Choice is not a barrier for today’s consumers, who are opting to enjoy more innovative content than ever before.
Thanks to multihoming, new entrants complement and compete with existing players.
27% of consumers plan to subscribe to more services in the coming year, indicating that new entrants are not deterring competition. “Providers face an increasingly crowded array of competing options for media and entertainment but, for now, streaming video services rule the screen. Pre–COVID-19, our survey showed the average US consumer had 12 paid media and entertainment subscriptions. Millennials averaged 17 subscriptions, Gen Z had 14, and Gen X had 13.5 And 27% of consumers, including 42% of Millennials, said they planned to subscribe to more services in the coming year.”
Rapidly growing streaming upstarts largely complement—rather than displace—more established streaming services, highlights Kelsey Sutton of AdWeek. “Established streamers like Netflix, Amazon Prime Video and Hulu don’t yet seem to be losing ground to streaming upstarts. Instead, new streaming services like HBO Max, Peacock, Apple TV+ and Disney+ are largely additive to older and more established services, according to new data.”
In recent times, consumers have turned to multihoming to keep connected and entertained, according to a recent Deloitte study. “Subscribers now have an average of four paid streaming video subscriptions, up from three in our pre–COVID-19 survey. Not only do more consumers have streaming video services, the average streamer pays for more services than ever. However, as more media providers join the fray—including Disney+, Apple TV+, and HBO Max—competition is growing and putting pressure on content and pricing.”
Multihoming is driving today’s tech services to compete across products and services. With multihoming in mind, companies are not relegated to one niche. Instead, they are prioritizing innovation and competition—making consumers the winners as they switch among their favorite companies, new and old.
Choice is not a barrier for today’s consumers, who are opting to enjoy more innovative content than ever before.
Subscribing is only the beginning: streaming platform users are engaging with content more actively, as discovered by Leichtman Research Group in August 2020. “Subscribers aren’t just paying for the services, Leichtman Research said — they are using them more. Each day, 40% of adults stream a [subscription video on demand (SVOD)] service, up from 30% in 2018 and 16% in 2015. Younger adults are the most active streamers, with ages 18-44 accounting for 63% of daily SVOD users.”
— “‘The adoption and use of these established SVOD services along with newer direct-to-consumer streaming video options have increased over the past year, spurred more recently by the impact of the coronavirus pandemic,’ said Bruce Leichtman, president and principal analyst for Leichtman Research Group.”
Platforms make it convenient for consumers to multihome, with the need for platform loyalty nonexistent in today’s marketplace, as outlined by Economist David Evans. “The number of apps that people can use is limited mainly by their ability to keep track of icons or bookmarks. Many online platforms are available to users for free. Consumers face no significant expense in installing an additional online platform app. Nor must they agree to use an online platform exclusively. As a result of these features, it is easy for people to multihome on several online platforms. They can conveniently switch back and forth depending upon which they prefer for which purpose. It is also easy for people to try a new alternative online platform and decide whether to keep using it or not.”
In the “work from home” era, the majority of consumers are using more than one chat app at once, according to a recent Morning Consult poll. With this level of choice, businesses and consumers have the flexibility to opt for the video conferencing application that best fits their needs.