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don ’ t have the mass-audience
pulling power they once had .”
“ But despite this , public
service broadcasters are still
unrivalled in bringing the
nation together at important
cultural and sporting
moments , while their ondemand
players are seeing
positive growth as they
digitalise their services to meet
audience needs .”
Data : Netflix dominates UK SVoD viewing
Evidence-based insights and
consulting company Kantar has
released its latest Entertainment
on Demand ( EoD ) data on
the GB ’ s streaming market .
Kantar ’ s EoD study in Great
Britain uncovers the following
behaviours and findings within
the Video on Demand ( VoD )
market between April to June
2023 :
• 7 % of British households
took out a new streaming
subscription in the second
quarter of the year , up from
5 % a year earlier
• Discovery +, Disney + &
Apple TV + saw the fastest
growth in subscriber share
over the quarter
• The Night Agent on
Netflix was both the most
watched and most enjoyed
SVoD title in June
• Disney ’ s The Mandalorian
was the second most
watched and enjoyed title
in June
• Netflix planned next
quarter subscription
cancellation increased
quarter on quarter to 4 %
from 3 % of its total GB
subscription base , off the
back of password sharing
restrictions
• Top reasons for watching
SVoD in Q2 : # 1 I want to
relax after a long day ,
# 2 I want something to
lift my mood , # 3 I want a
distraction to stop boredom
• Between April and
June 2023 , 19.97 million
households held at
least one VoD service ,
representing 68 % of
households
Amidst the ongoing strike
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by both writers and actors , many new productions have ground to a complete halt . While consumers may not feel the immediate impact , the upcoming months will lead to a significant slowdown in new content releases , which is cited as being the main reason for over 40 % of new SVoD services taken out by consumers .
Considering that newly released shows are cited as the # 1 driver of new service adoption , the usual buzz surrounding the latest shows will undoubtedly experience a notable shift . Streaming services will face the immediate challenge of reshaping their priorities by implementing revised content release strategies and prominently featuring library content to retain their subscriber bases , which have already been strained by the ongoing cost of living crisis . So , we expect to see the trend of releasing series episodes on a weekly basis accelerate . A delicate balance will be crucial to keep viewers engaged and satisfied during this challenging period - a balance which will prove easier to manage for services which have sizeable back catalogues , such as Netflix and Disney +.
Despite Netflix ’ s password sharing crackdown , next quarter ’ s planned cancellation rates only saw a mild increase to 4 % from 3 %. Netflix ’ s Night Agent proved the standout favourite title this quarter in Great Britain and was the # 1 most viewed title surpassing highly acclaimed series such as The Mandalorian , Succession and Ted Lasso .
Netflix also retained its dominance in overall viewing time , with almost half of subscribers accessing the service daily . A signal of Netflix ’ s strong foundation in British households is that 52 % of those with an SVoD subscription turn to Netflix first when they are looking to find a new series or film to watch . Prime Video trails a distant second , with just 13 %
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turning to Amazon ’ s streaming
service when looking for
inspiration .
Despite this popularity ,
it ’ s important to note that
only three in 1o most enjoyed
titles this quarter were
Netflix releases . This trend
underscores the fact that GB
households are diversifying
their content preferences ,
embracing a wider range of
offerings from other streaming
services , notably Apple TV +
and Disney +, which were once
viewed as supplementary . In
an ever-changing landscape
where content choices abound ,
households are increasingly
exploring beyond the
boundaries of a single service .
“ Streaming services will
face a delicate balance to keep
viewers engaged and satisfied
during this challenging period ,
without necessarily having a
plethora of fresh content to
entice them with ,” advises
Dominic Sunnebo , Global
Business Unit & Commercial
Director , Kantar Worldpanel .
“ A shift in content release
strategies and a focus on back
catalogues will be crucial to
weather the storm . Moreover ,
we observe that Netflix has
showed resilience in the
face of changing industry
dynamics , but households
are diversifying their content
preferences , exploring
offerings from other streaming
services like Apple TV + and
Disney +. With the cost of living
crisis showing little sign of
abating , it ’ s those services
that can demonstrate the most
value that are likely to emerge
as clear winners .”
Report : UK Q1 adspend flat
British advertising remained
stable in the first quarter of
the financial year 2023 with
flat year-on-year spending of
£ 9 billion (€ 10.5bn ), the AA /
WARC Expenditure Report
shows .
The outlook for the full
year , however , has improved
+ 2.1 percentage points on
April 2023 ’ s forecast to reach
£ 35.7 billion , equivalent 2.6 %
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expected year-on-year growth . “ With the economy flat over the last three years , and inflation remaining stubbornly high , macroeconomic headwinds continue to bear down on the UK ’ s advertising industry ,” notes James McDonald , director of data , intelligence and forecasting , WARC . “ That said , a welcome return to growth in key online sectors during the first quarter has been cause for an upgrade to our full year projections , with a forecast rise of 2.6 per cent demonstrative of more favourable trading conditions in the second half of the year .”
Some of this anticipated growth reflects a return to spending in online formats , which are forecast to account for 76.7 % of all advertising spend this year ( versus 75.1 % in 2022 ).
This adspend share growth is expected to continue steadily into 2024 , when online advertising is forecast to take a 77.6 % share .
Q3 appears to be blessed with advertising-friendly big events , not least the Women ’ s World Cup , which is set to provide a boost to TV spots , sponsorship , radio , and OOH spending growth .
Elsewhere , cinema – a heavy casualty of the pandemic – is projected to grow 20.8 % year on year for this quarter , propelled by this summer ’ s blockbuster releases : Barbie , Oppenheimer , and a new instalment of Mission Impossible .
“ With high inflation continuing to depress consumer and business confidence , we may end up seeing a real-terms contraction of nearly 4.3 per cent in 2023 for UK advertising investment ,” advises Stephen Woodford , CEO , Advertising Association . “ The recent higher-thanexpected fall in inflation will hopefully continue and with that we will see confidence begin to build later in the year and into 2024 , when the ad market is expected to return to growth ,” he added .
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EUROMEDIA 17 |