British paying VOD numbers dip

The number of video-on-demand-enabled households that subscribed to at least one video streaming service in Great Britain fell to 16.18 million, down 234,000, quarter on quarter Between July to September 2022, according to data from market research outfit Kantar. The total VOD-enabled number represented 56% of households in the UK market. 

However, after a sharp fall in SVOD household penetration in Q2, the market stabilised in Q3, with penetration losses lower than in the previous two quarters. Overall SVOD subscriptions increased, in absolute terms in Q3, up by 108,000 compared to Q2, said Kantar.

The launch of Paramount+ in the quarter did not have a major impact because 95% of Paramount+ subscribers were already subscribing to one or more subscription streaming services. While it contributed to the overall size of the SVOD market, the service brought in only a small number of entirely new streaming households. Subscription stacking slightly rose in the latest quarter, with the average VoD-enabled household subscribing to 2.5 different services, up from 2.4 the previous quarter.

Last quarter, Disney+ topped Netflix in its net promoter score – and has held onto its position in Q3, though the gap with Netflix has reduced. Disney+’ churn fell to an average of just 1.7%, whilst the same time continuing to secure a strong share of new subscriber acquisition, according to Kantar.

“There are a number of dynamics at play in the market, such as the cost-of-living crisis and subsequent ‘cord-cutting’, as well as a degree of ‘content fatigue’, experienced by some VoD viewers, which has resulted in an overall drop in household SVoD penetration. However, the launch of a new streaming service into the UK market has been relatively successful, suggesting that fresh content is still a key attraction for British viewers,” said Dominic Sunnebo, global insight director, Kantar, Worldpanel Division.

“Netflix accounted for just under 1 in 4 SVoD churners in the latest quarter, but what’s key here is that 45% of these Netflix churners dropped out of the SVoD market altogether. Data indicates that viewers did not switch to a competitor, or use a secondary streaming subscription; rather, they left the SVoD market altogether, reverting back to either pay TV or linear TV.  In fact, 38% of Netflix customers only have a Netflix streaming subscription, and these ‘solo streamers’ are making up a disproportionate number of Netflix churners.”