Kantar: Apple TV+ was ‘fastest growing’ SVOD in Q1

AppleTV+ was the fastest growing major SVOD streaming service in major markets in Q1, with market leader Netflix had a strong Q1 in Europe and Australia, according to the latest data from research outfit Kantar.

Kantar said that local services such as Movistar+ in Spain, Joyn Plus+ in Germany, and Kayo in Australia also saw increased levels of new paid subscriber share during the three months to March.

However, Kantar maintains that Amazon Prime Video’s introduction of an ad-supported tier was met with resistance from its existing user base, something not accepted by Amazon.

Key insights within the VoD market from January to March 2024 include:

Kantar also found that cost-conscious German households were most likely to switch one service for another, with 22% of new subscriptions being a direct replacement. Australian and German households also showed price sensitivity in Q1’24, with higher levels of cancellations attributed to “wanting to save money”

Nevertheless, VOD household penetration increased across nearly all markets tracked from Q4’23 to Q1’24, with only the UK marginally down, according to Kantar.

Kantar also found that consumer acceptance of ads for lower prices from SVOD players has grown, with 49% of VOD households in favour, up from 44% last year.

Kantar says that when Prime Video introduced ads in Q1 2024, offering an ad-free option for an additional fee, this led to a drop in Prime Video’s user base. The research outfit said that Amazon’s move led to drop in net satisfaction with value for money among the Prime Video subscriber base, standing at 25% currently (versus 29% in Q4), Howevber, it added that “this does still outdo competitors”.

Amazon had previously characterized Kantar’s findings as “incorrect”.

The tech giant said that “Prime membership continues to grow in the UK, with Q1 2024 membership up year-on-year and strong customer retention. Prime Video in the UK continues to see high customer engagement, with the number of people streaming growing year-on-year.

Kantar surveyed patters across the US, Australia, UK, Germany, Spain, and France.

Andrew Skerratt, Global Insights Director at Kantar Worldpanel, said, ” The latest Q1 data emphasises the evolving nature of the global VoD landscape. AppleTV+ maintained its momentum from 2023 with strong subscriber growth, while Netflix shone in Europe, and local services like Movistar+, JoynPlus+, and Kayo showcased stellar performances in their respective markets. The trend towards ad-supported models remained prominent, though met with resistance from certain user bases, particularly on Prime Video. These developments, coupled with Disney+’s exploration of ‘always on’ programming, highlight this everchanging landscape. With household preferences shifting just as quickly, there is a critical need for services to adapt in order to both sustain and expand their subscriber base.”