Netflix and Disney+ outperform in Q3, with signs of declined growth on Prime Video

Global leading SVOD services Disney+, Paramount+, Netflix and Apple TV+ saw strong subscriber growth in the third quarter whilst user growth stalls on Prime Video, reports marketing data and analytics firm Kantar.

Netflix was present in two-thirds of streaming households, whilst 49% of these households consider the  streaming giant to be their primary streaming subscription. However, Kantar highlighted this percentage has dipped from 53%, compared to the same period last year.

Regardless, the platform continues to perform strongly despite half of Netflix households subscribing to four or more services last quarter. Following Netflix’s password-sharing crackdown, their ad-supported tier has seen significant growth with one out of every three new subscribers, choosing this entry-price tier during the third quarter.

Disney+, Paramount+, and Apple TV+ have emerged as the leaders in the share of new paid subscribers in Q3 2023.

Disney+ generated new growth off the back of its promotional price campaign in Europe, and the company’s annual event, Disney+ Day. The research outfit said for the streamer to leverage drive further revenue growth from its yet to be introduced password-sharing restrictions “they must ensure they build deeper connections with the more casual Disney fans, ensuring the subscription delivers sufficient value”, with almost two-thirds of households with Disney+ subscriptions not using the service daily.

Paramount+ and Apple TV+ claimed the top two spots for share of new paid subscribers, off the back of its hit titles such as Yellowstone and Ted Lasso. Both streaming service have leverage in the US market with its sports content, Kantar noted. Paramount+ with its NFL programming, and Apple TV+ scoring rights to the Major League Soccer.

Prime Video

Findings pointed to declining growth of subscribers at Amazon Prime Video, with only 68% of Prime Members use and engage with Prime Video, the lowest recognised usage in the UK. A persistent challenge faced by Prime Video users is the service’s interface. Despite substantial changes made just over a year ago, subscribers still find it less user-friendly than Netflix.

Sports Streaming

Kantar’s EoD data showed the highest ever percentage (19%)  of new streaming sign ups are derived from new and expanded sport catalogues. According to the research firm, sports streaming is aggressively challenging traditional Cable/Pay TV.

The company explained, “Whether by including live sport or more effectively promoting their existing catalogue, the greatest challenge for Netflix competitors remains turning initial hero title attraction into long-term subscriptions amidst the cost-of-living crisis. The proliferation of ‘boomerang subscribers’, who consistently rotate services that fail to capture sufficient household viewing time, is still on the rise. In an era where stacked subscriptions are prevalent, securing screen time is vital.”