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sports federations at national and
international level is just one of
the effects of the investment our
Members provide . As non-profit
organisations our investment
goes straight to where it matters
most , providing an immense
multiplier effect . It ’ s not just
about what happens on the field :
it ’ s the countless opportunities
it unlocks off the field , driving
substantial economic growth –
worth billions in real terms – and
delivering profound benefits for
individual mental and physical
health This would not be possible
without the support , investment
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Data : Prime Video subs resist ad tier
Findings from marketing data
and analytics company Kantar ’ s
latest Entertainment on Demand
( EoD ) data and analysis on the
UK ’ s streaming market suggest
that
Prime Video ’ s introduction
of an ad-supported tier was
met with significant resistance ,
leading to a notable subscriber
exodus and dissatisfaction –
although Prime Video has been
quick to refute the data .
In contrast , AppleTV + and
Netflix have successfully engaged
and retained their audience ,
with strong content offerings
and stable performance metrics .
These dynamics underscore the
challenges and opportunities
within the evolving SVoD market ,
where consumer preferences
and responses to pricing and
advertising strategies can
significantly impact business
performance .
Kantar ’ s EoD study in Great
Britain uncovers the following key
behaviours within the Video on
Demand ( VoD ) market between
January and March 2024 :
• Prime Video suffers as
subscribers ’ push back after
being asked to pay more to
avoid ads
• AppleTV + held onto its top
spot in terms of share of new
SVoD subscriptions in Q1 of
2024 with 16 % share
• Disney + took second spot
in share of new subscriptions
with historical drama , Shogun ,
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performing strongly
• Netflix is the go-to
destination for inspiration on
what to watch next , as 52 % of
all British SVoD subscribers
search Netflix first for new
content
• 19.9m British households
have at least one paid video
streaming service in their
household , virtually flat vs . the
previous quarter ( Q4 ’ 23 )
Prime Video tough first quarter after new ad supported tier debut
Prime Video is the streaming
service most impacted by
seasonality , often seeing a drop
in Q1 following a peak in Q4
driven by Christmas period Prime
membership spikes . However , Q1
this year was particularly tough .
As from 29th January ,
Amazon introduced ads to
its video streaming service ,
requiring existing subscribers
to pay an additional £ 2.99
[€ 3.45 ]/ month to remain ad free .
The response was hundreds
of thousands of subscribers
ditching the service immediately .
Key metrics , including share of
new subscribers , total number
of subscribers and proportion of
Prime users engaging with Prime
Video all fell significantly in the
first quarter of 2024 . Subscriber
advocacy , as measured by Net
Promoter Score , was the lowest
it has been in over three years .
The subscriber churn rate as
measured in January 2024 was
the highest for Prime Video
measured by the Kantar study
since it began in 2020 .
Despite other high profile
streamers introducing ad-tiers ,
Prime Video is the only major
service whose subscribers display
an active net dissatisfaction
with the number of ads being
served . The only positive was that
Reacher made it as the # 2 most
enjoyed show over the quarter
with the much talked about
Saltburn coming in at number 8 .
AppleTV + # 1 for second consecutive quarter in new SVoD subs
After reaching its highest ever
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share of new SVoD subscriptions
during Q4 2023 , AppleTV +
held onto top spot in the first
quarter of the year with 16 % of
market share . Slow Horses and
Ted Lasso continue to act as a
strong catalyst for attracting new
subscribers , whilst WW2 series
Masters of The Air accounted
for 12 % of new title driven
subscriptions . Almost half of
AppleTV + new subscribers joined
to view a specific title in the
quarter . AppleTV + is managing
to reach a far wider audience
than seen previously , with the
majority of its subscriber gains
seen in the 45 – 54-year-old age
bracket , reducing its previous
heavy reliance on younger
audiences . Free trials continue
to bolster AppleTV + numbers ,
but the proportion paying for
the service has risen for the last
nine months . There are signs
churn rates are being managed
more effectively , with a decline
seen every month throughout Q1
2024 .
Guy Ritchie ’ s The Gentlemen captivates Brits
The Gentlemen on Netflix has
proved to be a major hit for the
streaming platform , as both the
most watched and most enjoyed
SVoD title during March . Netflix
saw a strong quarter of new
subscriber additions , holding 15 %
of all new SVoD additions in the
first quarter , a + 5 % rise vs . the
previous quarter . Netflix churn
remained steady in the quarter
and the lowest in the category .
Customer advocacy at Netflix
continues to build , and it remains
in top place since overtaking
Disney + in Q3 2023 .
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Netflix is the go-to destination for new viewing inspiration
Despite significantly increased
competition in the British
SVoD market , one of Netflix ’ s
strongest but least talked about
superpowers , its place as the
first destination consumers go to
discover new content , remained
as strong as ever over the year .
Moreover , 52 % of all British
SVoD subscribers go to Netflix
first when they are looking for
inspiration for something new to
watch , up 1 % vs . the same period
a year ago . Significantly , 60 %
of Netflix subscribers who have
multiple SVoD services in their
household consider it to be their
most important service , + 1 % vs . a
year ago .
“ In the first quarter of 2024 ,
we ’ ve seen stark contrasts in
strategy and subscriber response
among major players ,” notes
Dominic Sunnebo , global insights
director at Kantar Worldpanel .
“ Prime Video , for example ,
faced significant challenges as it
introduced an ad-supported tier ,
resulting in notable subscriber
churn and dissatisfaction .
In contrast , AppleTV + has
successfully held onto its
leadership in new subscriptions ,
driven by compelling content
and an expanded demographic
reach . Netflix continues to
excel as the first port of call
for British consumers seeking
new and engaging content ,
with strong subscriber
retention and growth . These
trends underscore the critical
importance of understanding
consumer preferences and the
impact of service changes on
subscriber behaviour and market
positioning .”
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EUROMEDIA 17 |