Industry challenges threaten global streaming subscriber growth

Data in Kantar’s global Entertainment on Demand (EoD) study showed Amazon Prime Video, Netflix and Paramount+ securing the top three most popular services for new subscribers in the quarter ended 30 June, closely followed by Apple TV+ in fourth position.

Apple TV+ experienced significant growth during the quarter, driven by Ted Lasso which was the most watched SVOD title in the quarter. The Mandalorian, Ted Lasso, and NCIS were the top viewed SVOD titles, with Netflix’s Manifest being the most watched title in June.

Other notable trends included a rise in so-called boomerang subscribers as viewers cancel services failing to provide sufficient viewing time. Netflix planned subscription cancellations for the next quarter increased year-on-year to 5% from 4% of its total subscription base. Kantar found. Disney+ was said to be primed to continue attracting subscribers through challenging writers/actors’ strike which was already presenting inventory challenges for streaming services.

Leading from this, Kantar noted that the current landscape of the VOD market is fuelled by what oy called “captivating” content. In the context of the ongoing strikes, Kantar highlighted the fact that viewers have traditionally been drawn to streaming services by new shows, which was the leading driver of new subscriptions.

Recommendations from friends and family accounted for 27% of new Netflix subscriptions this quarter but the lack of new releases and perceived value for money were found to be the top two pain points for streaming services, even without the impact of a writers/actor’s strike.

The analyst added that in a cost-conscious landscape where viewers crave fresh content releases, streaming services faced increasing pressure to find innovative ways to deliver captivating content while offering excellent value to subscribers. Perceptions of value were also now seen to be intertwined with the frequency of service usage in the minds of consumers.

Ultimately, Kantar noted that streaming services with substantial back catalogues, like Disney+, were better positioned to maintain a balance during this challenging period. The platform has an extensive catalogue encompassing a wide array of beloved franchises, notably earning top subscriber satisfaction for its wide variety of content, and with 41% of subscribers stating they are happy with the amount of original content, second only to Netflix at 47%. All of which is further bolstered by Disney’s enduring, and powerful brand presence. Rapid TV News