The research found that the overall household penetration rate for the UK streaming market has only fallen for the second time, with 16.9 million or 58% of UK households now having at least one paid subscription, down from 215,000, quarter over quarter.
While churn rates increased almost everywhere, there was a clear difference in the scale of attrition besides Netflix and Amazon. SVOD’s first two services have been described as “hygiene” subscriptions, the last to disappear when households are forced to prioritize their spending. In contrast, Disney+, NOW, Discovery+ and BritBox all saw significant increases in churn rates quarter over quarter. Reasons for churn also point to inflation being a top consumer concern, with a third of those who canceled an SVOD service in the quarter saying it was ‘to save money’, a jump compared to 28% in the previous quarter.
Planned cancellations of SVOD services were on the rise, with “wanting to save money” being the driving factor accounting for 38% of planned cancellations in the second quarter. This was bolstered by the lowest new subscriber rate on record – just 3.0% of households signed up for a new SVOD subscription in the quarter, down from 4.2% a year earlier.
The study also revealed that for the three months to March 2022, 1.51 million SVOD services were canceled by households in the first quarter of 2022, compared to 1.04 million the previous quarter and 1.20 million there. a year ago. More than half a million cancellations were attributed to saving money. The proportion of consumers planning to cancel SVOD services and reporting “wanting to save money” as their primary reason rose to its highest level ever at 38%, up from 29% in Q4’21.
The GenZ household streaming service’s penetration rate fell slightly for the first time, to 74.6% from 75.4% in Q1 2020 and a peak of 75.8% in Q4 2021, when only 3.0% of households in Britain subscribed to a new streaming subscription video in Q1 2022, compared to 4.2% over the same period in 2021.
“With many streaming services experiencing significant revenue growth at the height of Covid, this moment will be sobering,” said Dominic Sunnebo, Director of Global Information, Kantar, Worldpanel Division, commenting on the Entertainment on Demand study. . “Evidence from these results suggests that UK households are now proactively looking for ways to save, and the SVOD market is already feeling the effects. As a result, it is now more essential than ever that SVOD providers demonstrate consumers how indispensable their services are at home in what has become a highly competitive market.New marketing and content acquisition strategies will likely need to be deployed to support this and prevent further churn.