The number of UK households subscribing to at least one video-streaming service appears to have fallen this quarter as the rising cost of living squeezes disposable incomes.
Kantar’s latest Entertainment on Demand study showed UK households were starting to prioritise saving money over entertainment as cancelling subscription video on-demand (SVOD) services increased quarter-on-quarter and year-on-year.
The number of UK households that have at least one paid subscription fell by 215,000 quarter-on-quarter to 16.9 million households or 58% of households.
Kantar also found 1.51 million SVOD services were cancelled by households this quarter compared to 1.04 million in Q4 2021 and 1.20 million in Q1 2021.
More than half a million of these cancellations were put down to “money saving”.
Nearly four in 10 (38%) of households are planning to cancel an SVOD service mainly down to “wanting to save money” this quarter, compared to 29% in the preceding three months.
Streaming service penetration amongst GenZ households fell for the first time from a peak of 75.8% in Q4 2021 to 74.6% in Q1 2022.
For the three months up to March 2022, only 3% of households in Great Britain signed up to a new video-streaming subscription, compared to 4.2% in Q1 2021.
Churn rates for streaming platforms increased across the board as inflation hit 7% this month, however, Netflix and Amazon were seen as more of a “hygiene” subscription, the last to go when households were budgeting for rising costs.
Disney+, NOW, Discovery+ and Britbox saw significant churn rates this quarter compared to the last. Disney+ for example tripled its quarterly churn to 12% this quarter.
Kantar’s research found UK homes that subscribe to streaming services now subscribe to an average of 2.4 services.
In the last 12 months the number of consumers…
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