UK streaming service subscriptions plummet amid household budget crisis

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New research has revealed that the number of UK households paying for streaming services fell in the first quarter of 2022, with 1.5 million total cancellations during this period.

16.9 million UK households (58%) had at least one subscription service at the end of the first quarter of 2022, which was down 215,000 quarter on quarter, according to research by Kantar. 1.29 million new subscriptions to streaming services were recorded, but there were also 1.51 million cancellations.

38% of consumers plan to cancel services and said the main reason for cancellation was “the desire to save money”. Households that have subscribed to streaming services subscribe to an average of 2.4 of them, but churn rates have apparently increased almost everywhere.

“With many streaming services experiencing significant revenue growth at the height of Covid, this moment will be sobering,” said Dominic Sunnebo, Global Insight Director, Kantar, Worldpanel Division. “Evidence from these results suggests that UK households are now proactively looking for ways to save, and the SVoD market is already seeing the effects. Therefore, 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.

Adam Seagrave of commercial investment platform Saxo Markets said: “Netflix’s nightmare could continue this week as the streaming service announces its first quarter results after its share price fell 39% from last year. the same period last year.After a boom thanks to the lockdown, the company missed its subscriber target in its last report in January and with users counting their pennies more than ever, the growth in their user numbers could experience another blow.

“Streaming services are rapidly falling down the pecking order and a negative Netflix earnings today could be an indicator that these entertainment stalwarts, such as Amazon Prime and Disney+, may struggle to prove their worth to the world. ‘coming.”

Netflix reinvented itself from a postal DVD subscription service to a streaming platform and then did a lot of work to transform the way the world consumes TV and movies. In the wake of its success, many other companies from all sorts of industries have tried to get in on the action – whether it’s tech TV studios (Apple, Amazon) themselves (Paramount) or entertainment conglomerates (Disney).

Exacerbated by the pandemic, the number of hours people around the world have been willing to devote to streaming their favorite TV shows or the latest movies seems to have had no limits, prompting anyone who could to capitalize. on existing intellectual property or to become film studios themselves to produce content to attract subscribers to their platform.

All good, but the question has always been how much of these platforms an average household would actually shell out on a monthly basis. Netflix is ​​almost the default and the brand name is synonymous with streaming in general at this point, but there are also Now TV, Dinsey+, Apple TV+, Hayu, DAZN, Britbox, Starzplay and many more trying to get you out of a submarine.

According to this research by Kantar, it looks like in the UK at least the streaming gold rush we’ve seen so far may be colliding with the current national mood of looking at pennies as the problems very real worlds of rising living costs, gasoline prices and inflation. In this context, that third streaming app you never watch might seem like an easy thing to delete, especially since we’re no longer confined to our homes with nothing else to do, as we have been for long periods over the past two years.

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