Over the past ten years, streaming has slowly replaced traditional television as the primary method of viewing programming. However, with energy bills and inflation on the rise, many households are choosing to make budget cuts that could hurt the likes of Amazon Prime, Netflix and Disney+.
A Kantar Worldpanel report has revealed that 16.9 million UK households had at least one subscription service at the end of the first quarter of 2022.
Even though there were 1.29 million new sign-ups to subscription services during this period, this was outweighed by 1.51 million cancellations.
When asked in the Kantar report, more than half a million respondents said their reasoning was “to save money.”
There are multiple streaming services in the UK market with more like HBO Max set to launch in the near future.
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Here’s a breakdown of the standard monthly subscription costs for each of the country’s top services:
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Hypothetically, if someone canceled their Netflix subscription for a year, they would save £131.88.
Households are looking for more saving tips as inflation hits a 30-year high and energy bills are forecast to rise by nearly £700 next year.
Dominic Sunnebo, Global Chief Information Officer at Kantar Worldpanel, shared how he thinks this report shows Britons are “proactively looking for ways to save” by reducing their subscription service budget.
Sunnebo said: “With many streaming services witnessing significant revenue growth during the height of Covid, this moment is going to be sobering.
“Evidence from these findings suggests that British households are now proactively looking for ways to save, and the streaming video on demand (SVoD) market is already seeing the effects of this.
“As a result, it is now more critical than ever for SVoD providers to demonstrate to consumers how indispensable their services are in the home in what has become a very competitive market.
“New marketing and content acquisition strategies will likely need to be implemented to support this and prevent further churn.”
Looking more specifically at the data, it found that households in the UK were more likely to keep certain services, such as Netflix and Amazon.
However, Disney+ saw its “churn rate” triple from one quarter to the next, as households chose to take their money elsewhere.
Churn-rate is the new term used by streaming services and media pundits to describe the rate at which subscribers are leaving their platform.
According to Sunnebo, these latest figures may be a wake-up call for media giants that have launched streaming services in the last two years.
He added: “You can see that Netflix and Amazon are the last to go when households are forced to prioritize spending.
“Among households that subscribe to streaming services, Netflix consistently ranks number one in importance, regardless of what platform it is on.
“But for the likes of Disney+, the implications are significant as it needs to turn its attention to replacing existing services that households subscribe to now, no longer always looking like another incremental addition.”