Subscription video services are finding that success is not just about global dominance but also understanding regional dynamics within key markets. Recent data from S&P Global sheds light on significant differences in SVOD usage and preferences across the top 25 U.S. TV markets, offering critical insights into how geography influences consumer behavior.
These findings present a valuable roadmap for tailoring regional marketing and content strategies for streaming services.
Los Angeles and Minneapolis: The Extremes of Growth
Los Angeles, often viewed as the world’s entertainment capital, continues to lead in SVOD adoption, with 91% of respondents reporting usage. This high rate reflects the city’s intrinsic connection to the media and entertainment industry and its population’s readiness to adopt diverse content offerings.
Meanwhile, Minneapolis-Saint Paul, the birthplace of scotch tape, emerged as the fastest-growing market, with an 11% increase in SVOD adoption year-over-year, jumping from 75% in 2023 to 86% in 2024. This surge suggests an untapped opportunity in mid-sized urban areas that major streaming services may have previously overlooked. Factors driving this growth include improved broadband access, targeted local campaigns, and word-of-mouth buzz about new content offerings.
However, not all markets are trending upward. Houston experienced the sharpest decline, falling from 91% in 2023 to 84% in 2024. This drop may indicate economic pressures or shifting consumer priorities, highlighting the volatility even in traditionally strong markets.
What We Watch: Regional Service Preferences
- Denver and Netflix: Denver leads the nation in Netflix usage, with 65% of respondents in the market subscribing. Netflix’s broad catalog and strong brand presence likely appeal to this tech-forward, outdoors-loving market.
- Portland and Prime Video: Prime Video claims 63% of respondents in Portland, the highest for any market. Its integration with Amazon’s e-commerce platform and live sports offerings likely resonate with Portland’s tech-savvy demographic.
- Dallas-Ft. Worth and Family Favorites: In the Dallas-Ft. Worth market, Disney+, and Hulu reign supreme, with 42% and 48% adoption rates, respectively. Disney’s family-friendly offerings align well with the region’s demographic makeup.
Smaller players like Apple TV+ and Paramount+ showed more significant variability in regional uptake. Apple TV+ tied for the top spot in four markets (New York, Portland, Miami, and Los Angeles), reflecting its niche yet loyal audience. On the other hand, Paramount+ showed the widest spread, with 37% adoption in Dallas-Ft. Worth compared to just 20% in the San Francisco Bay Area, illustrating the challenges mid-tier platforms face in gaining consistent traction.
Subscription Stacks: How Many Services Are Enough?
On average, respondents in the top 25 markets use 3.6 SVOD services, down from 3.8 last year. This decline aligns with broader trends of subscription fatigue as households look to cut back spending and consolidate services.
Notably, Dallas-Ft. Worth leads in subscription variety, with an average of 4.4 services per household, reflecting a strong appetite for diverse content. In contrast, Indianapolis trails with just 3.2 services on average, possibly due to fewer broadband options or less emphasis on streaming entertainment in the region.
Markets like Raleigh-Durham and Indianapolis experienced significant drops in the average number of services used, suggesting a growing reliance on bundled offerings or free, ad-supported streaming options. Minneapolis-Saint Paul again bucks the trend, seeing an increase from 3.0 to 3.4 services, signaling an expanding interest in streaming across the region.
Implications for the Industry
The geographic disparities in streaming preferences reveal several key opportunities for SVOD platforms:
- Localized Marketing Strategies:
Streaming services should consider tailoring their marketing campaigns based on regional preferences. For example, Netflix could lean into its Denver dominance with targeted outdoor-themed campaigns, while Disney+ could expand its family-focused messaging in Dallas-Ft. Worth. - Ad-Supported Models for Declining Markets:
In areas like Houston, where SVOD adoption is falling, ad-supported tiers may serve as an entry point to attract cost-conscious viewers. Platforms like Peacock and Paramount+ could capitalize on this trend to expand their footprint. - Investing in Regional Content:
Services might also explore regional content strategies, including partnerships with local creators or exclusive deals on popular sports and events. Platforms can foster stronger engagement and loyalty by aligning content offerings with local tastes.
Conclusion: Navigating a Fragmented Future
As the U.S. streaming market matures, it’s clear that one-size-fits-all strategies are becoming less effective. The regional differences highlighted by S&P Global’s survey—based on a robust sample of 13,299 U.S. internet adults—underscore the importance of understanding local dynamics to remain competitive. By leveraging these insights, streaming platforms can retain their existing subscriber bases and tap into new opportunities across diverse markets.
Ultimately, the most successful services won’t just dominate globally—they’ll also know how to win regionally.
The research from S&P Global can be found here.
