The number of people subscribing to at least one video streaming service in the UK has fallen, with more than 1.5 million people opting out, a new report has found.
Market research firm Kantar said more than half a million cancellations are due to the cost of living crisis, as households prioritize streaming services as they try to make ends meet.
A total of 1.51 million cancellations occurred in the first quarter of 2022.
Image: Inventing Anna was one of the most watched shows at the beginning of the year. Photo: Nicole Rivelli / Netflix
Approximately 58% of Britons already have at least one paid streaming service, such as Netflix, Amazon Prime Video or Disney +.
During the COVID-19 pandemic and the government imposed a blockade, there was a jump in platform subscriptions, leaving more people at home.
However, the report found that the share of consumers who plan to cancel their subscriptions due to tight budgets has risen to its highest level ever, from 29% to 38% in the last three months of 2021.
In a report, Kantar said homes said one of the main reasons for the cancellation included “a desire to save money”, adding that “households are starting to seriously prioritize where and how their disposable income is spent”.
Sobering news for the streaming industry
Dominique Sanebo, global director of the Worldpanel Division, said the latest market research was “sobering” for the streaming industry.
“Evidence from these findings shows that British households are now actively looking for ways to save, and the SVoD market is already seeing the effects,” he said.
Image: Jason Bateman and Julia Garner in Ozark, which was one of the most watched Netflix shows. Photo: Netflix
“As a result, it is now more important than ever for SVoD providers to demonstrate to consumers how their services are indispensable at home in what has become a highly competitive market.
“New marketing and content-acquisition strategies will probably need to be deployed to maintain this and avoid further outflows.”
The report also found that Amazon Prime’s thriller Reacher, starring Alan Richson and Willa Fitzgerald, was the best-selling show between January and March 2022, followed by Ozark and Inventing Anna on Netflix.
Kantar said the “cancellation” rate has increased in all streaming services, but there is a “clear difference” in the number of cancellations outside of Netflix and Amazon.
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“It can be seen that Netflix and Amazon are hygiene subscriptions for the British; the last ones to go when households are forced to prioritize spending, ”Kantar said.
“Disney, Now TV, Discovery + and BritBox have seen significant jumps in quarterly ebb rates.”
Advertising can help revenue growth
New subscriptions also had the lowest rate ever in early 2022, with Netflix adding 18.2 million members last year – half the number of subscribers in 2020.
Netflix investors hoped to see an increase in subscriptions, which reduced the company’s share price by almost 20%.
The company acknowledged that competition from Disney +, Apple TV, Amazon Prime and HBO was having an impact, and advertising was the “obvious way” to drive revenue growth, something Netflix has historically strictly avoided.
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