Despite the cost of living crisis, people in the UK are tending to spend more and certainly no less on streaming video services, preferring to cut other expenses than their own entertainment at home, even subscribing to extra services as they cut other spending says Omdia research.
The analyst calculated that currently, the average UK household has 2.6 pay subscription services at home, 2.0 subscription video-on-demand (SVOD) services and 0.6 pay-TV packages.
Despite its most recent results showing a decline in global subscriptions, Netflix remains the UK’s favourite video service. Omdia noted that the most popular services in the UK currently were Netflix 15.5 million subscriptions; Amazon Prime Video, 10 million subscriptions; Disney+ with 7.5 million subscriptions.
However, Omdia noted that churn had increased significantly in the last 12 months. Its data revealed that 45% more subscription video services were cancelled in the last 12 months, while overall there were 20% more consumers cancelling their services compared to last year, but counteracting this trend, the number of services cancelled and resubscribed to in the last 12 months has grown higher by 84% meaning that although more people are churning, more people are subsequently resubscribing.
The biggest growth in the last six months came from Disney which increased by 21 %; NOW TV, 18 %; Netflix, 8%; and Amazon, 5%. Those with four streaming video services per home are the ones churning less than those who took more than seven SVOD services are among the highest churners.
Commenting on the research, Omdia senior director Maria Rua Aguete said: “The number of people paying for video services in the UK has increased 11% over the last year and quarter on quarter since April 2021. “With the lowest churn rate across all streaming video services and highest lifetime value per costumer, Netflix will continue and surpass Disney by 2026.”
Despite its most recent results showing a decline in global subscriptions, Netflix remains the UK’s favourite video service. Omdia noted that the most popular services in the UK currently were Netflix 15.5 million subscriptions; Amazon Prime Video, 10 million subscriptions; Disney+ with 7.5 million subscriptions.
However, Omdia noted that churn had increased significantly in the last 12 months. Its data revealed that 45% more subscription video services were cancelled in the last 12 months, while overall there were 20% more consumers cancelling their services compared to last year, but counteracting this trend, the number of services cancelled and resubscribed to in the last 12 months has grown higher by 84% meaning that although more people are churning, more people are subsequently resubscribing.
The biggest growth in the last six months came from Disney which increased by 21 %; NOW TV, 18 %; Netflix, 8%; and Amazon, 5%. Those with four streaming video services per home are the ones churning less than those who took more than seven SVOD services are among the highest churners.
Commenting on the research, Omdia senior director Maria Rua Aguete said: “The number of people paying for video services in the UK has increased 11% over the last year and quarter on quarter since April 2021. “With the lowest churn rate across all streaming video services and highest lifetime value per costumer, Netflix will continue and surpass Disney by 2026.”
