Almost half a million Brits leave streaming in Q2 as SVOD declines | Media Analysis | Business | News | Rapid TV News
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More evidence has emerged as to the adverse effect the cost of living crisis is having on the UK entertainment market with data from Kantar showing that as inflation continues to rise, consumers are continuing to search for ways to cut costs with subscription video-on-demand (SVOD) at the sharp end.
Kantar VOD 19July2022
Indeed, Kantar’s latest Entertainment on Demand data on the UK’s streaming market in the second quarter of 2022 revealed that SVOD market decline accelerated by 488,000 households, with 1.66 million SVOD services cancelled during the second quarter of 2022, up 10% from the previous quarter and 37% a year ago. Kantar’s data suggests that the decline is driven in almost equal part by a decrease in households taking out new subscriptions and an increase in those cancelling services.

Between April to June 2022, the number of VOD-enabled households that subscribed to at least one video streaming service in Great Britain fell to 16.42 million, down 488,000, quarter-on-quarter, representing 56% of households. This follows a fall of 215,000 in the first quarter of this year. The 56% of households compares to 58% in Q1 22 and 57% of households in Q2 21.

Interestingly, the proportion of consumers planning to cancel SVOD services and stating the primary reason as ‘wanting to save money’ dipped slightly from an all-time high in Q1 22 (38%) to 36% in Q2 22 but remained significantly heightened from a year ago (24%). Overall, only 50% of households agreed or strongly agreed they get good value for money from their spend on SVOD services, down from 57% a year ago.

The largest drop in penetration was seen in the youngest households, with those with under 24s present seeing SVOD penetration drop by 2.6 percentage points compared with a drop of just 0.5 in 55–64-year-old households. Whilst typically Kantar saw engagement levels highest amongst younger SVOD viewers, often lower incomes amongst this group means they are forced to cut spend the fastest. Additionally, this younger cohort often had a wider variety of other entertainment sources at their disposable, including several free options such as TikTok.

Almost two-thirds of all of those who dropped out the SVOD category in Q2’22, continue to use BBC iPlayer at least weekly.

Looking at business trends in the market, the study noted that Disney+ had a strong quarter with share of new subscribers growing to 21.5% in Q2’22. For the first ever time, Disney Plus Net Promoter Score (NPS), a measure of subscriber advocacy, overtook Netflix and is now the highest across all major SVOD services in Great Britain. Netflix saw a NPS drop of -10 vs. the previous quarter, indicating significant challenges in the quarters ahead. The pronounced decline in Netflix subscriber advocacy is predominantly driven by a perceived decline in value for money from the service and satisfaction with the quality of the shows.

Apple TV+ achieved its highest ever share of new SVOD subscribers for the second consecutive quarter, holding 9.9% share. Kantar noted that it was also clear that Apple TV+ was not just succeeding in winning new customers but was also seeing higher levels of engagement among its existing subscriber base. Satisfaction with the amount of original content on Apple TV+ is at an all-time high and planned cancellation is at an all-time low.

“In Q2, we observed how British consumers continued to cancel subscriptions across the board. In terms of the TV streaming market, the decline in subscriptions is being driven largely by younger ages,” said Dominic Sunnebo, global insight director, Kantar Worldpanel Division, commenting on the Q2 Entertainment on Demand research.

“This group often have a wider variety of entertainment sources, including BBC iPlayer and free services such as TikTok, suggesting that this age is still interested in viewing TV streaming, just for a lower cost. Disney performed well in Q2 because of its broad and diverse content inventory whereas Apple TV’s success in the UK market came because of focusing on local content, such as popular British TV shows. With Netflix announcing its partnership with Microsoft to build an advertisement-supported tier of its streaming service, it will be interesting to see how it performs in the next quarter against its competitors.”