Kantar: Amazon Prime Wins Highest Share Of New SVOD Subscribers
Amazon Prime had the highest share of new streaming subscribers for the first quarter of the year, as the market stabilises following 1.1million cancellations.
Despite 1.15 million video streaming services being cancelled between January and March 2023, things seem to be stabilising. There was a net increase of 189,000 new services for the quarter and the proportion of households planning to cancel at least one service over the next three months has come down from 24.4 per cent in Q4’22 to 23 per cent in Q1’23.
When it comes to new SVoD subscriptions, Amazon Prime Video took the highest share, with its share growing quarter on quarter to almost 23 per cent. Binge followed in second place with share up to 11.9 per cent, while Paramount+ dropped to third place with 9.6 per cent share after a particularly strong Q4’22. Share growth is also seen for Stan and YouTube Premium (with free trials growing strongly as a key trigger to sign-up for both services), Kayo (NRL and AFL season launches) and Britbox. Despite an increase in take-up of Basic with Ads to 18 per cent of new Netflix services this quarter, Netflix share of all new subscriptions drops back this quarter to 7.5 per cent, or 6.6 per cent within the SVoD market only.
According to Kantar’s data, 61.5 per cent of Australian households subscribed to at least one video streaming service in Q1’23, representing an increase of 10,000 households compared to the previous quarter, bringing the total to 6.12 million households.
A total of 4.5 per cent of households subscribed to a new video streaming service in Q1’23, resulting in a total of 1.34 million new subscriptions. Interestingly, the report shows that households are more likely to switch between services rather than stack subscriptions, with the average number of VoD services per household remaining constant at 3.4.
The Last of Us was the most recommended and most enjoyed SVoD title in Q1’23 and was the top title driving acquisition of new Binge customers, with Netflix’s YOU and Wednesday the next most enjoyed titles for the quarter.
Reducing costs and maximizing value remain top priorities for viewers
Although the total number of service cancellations has decreased to 1.15 million, the desire to save money is becoming an increasingly popular reason for cancellation, rising from 37 per cent in Q4’22 to 41 per cent in Q1’23. This is particularly true for customers of Stan, Disney+ and Netflix. Furthermore, 30 per cent of cancellations are due to households not regularly using the service and feeling that they are not receiving the desired value. Apple TV+ has the highest rate of churn, with 22 per cent of its customer base cancelling their subscription this quarter, mainly due to lack of use.
Value for money continues to be the second biggest driver of sign-up in the total market (after specific content). Almost a third of new Prime Video subscribers claim to have signed up for value for money, with this factor becoming increasingly important among all Prime Video customers. It is particularly popular among those who use more than one of the Prime services on offer and those who are signed up on an annual subscription. In fact, 48 per cent of Prime Video customers cite value for money as the biggest satisfaction driver.
Although specific content is the primary driver for new sign-ups on Netflix, the biggest reason for signing up for the ad-supported plan, which accounts for 18 per cent of new Netflix services, is unsurprisingly value for money, with 34 per cent of customers citing it as the reason for signing up. This is in contrast to those signing up for the premium ad-free service, where only 28 per cent cite value for money. Interestingly, 6 per cent of Netflix customers have downgraded their subscription from ad-free to Basic with Ads this quarter, which may have saved them from cancelling their subscription altogether. Among those who downgraded, 13 per cent had planned to cancel their subscription in the previous quarter, which is twice the Netflix average.
Please login with linkedin to comment
MediaLatest News
DMARGE Founder Unveils Creator-Led Social Media Agency Feedstar
New creator-led social media agency Feedstar to be aimed directly at Gen Zs. Well, they'd hardly want print, would they?
TV Ratings (02/05/2024): A total of 1,753,000 Aussies Witness Port Adelaide’s Defeat
Seven's AFL numbers almost double that of the NRL last night. The NRL still easily winning for ruptured ACLs.
Hotglue Cashes In With La Trobe Financial Digital Media Account
Hotglue staffers learning their cashflows from their collaterals today after nabbing La Trobe Financial's digital media.
M&C Saatchi’s Sydney Creative Lead Exits
B&T's stopping short of calling it a revolving door at M&C at the present, but there's definitely heat on the hinges.
Taylor Swift’s Music Re-Enters TikTok As Universal Pens Landmark Deal
Yes, B&T may have spent 152 hours failing to get Taylor Swift tickets, but, as you'll read here, it's all behind us now.
HAVAS Red launches inaugural Influencer White Paper
Havas Red has debuted its first influencer white paper. Unless you print it out in colour, of course.
Two Sides Global Campaign Reports Increasing Greenwashing As Organisations Focus On Sustainability
New report confirms greenwashing's on the rise. Apparently Mars' 'work, rest & play' claims also under investigation.
Aruga Launches New HQ & Changed Ownership Structure
PR agency Aruga proves Brisbane is 'so hot right now'. So hot in fact, Adelaide's had to go on anti-anxiety meds.
Delicious & American Express Partner To Launch Month Out 2024 In Sydney
Cost of living got you eating noodles prepared in the two-minute style? Why not live vicariously through this.
Aussie Ad Market Continues Decline In March
The belt-tightening in adland shows signs of a turnaround soon. Bar the belt-loosening at the all-you-can-eat buffet.
VMA Focuses On Skills And Training For Members
If there was a post-COVID hangover (bar the anti-vax ranters) it was the rise in skills shortages. Here's another one.
Nearly 90% Of Consumers Want Transparency About AI Images, Finds Getty Images Report
Study finds consumers want transparency around AI images. Couldn't care less about photoshopped magazine covers.
The National Breast Cancer Foundation Partners With VML To Boost Funds
Anyone else feel we've exhausted the office morning tea for cancer? B&T proposes the office moonshine still instead.
Perry ‘Pez’ Lazaris Named New National Hit Network Announcer
Why is it mandatory for the media to only publish the nicknames of people in radio & underworld crime figures?
Before Adland: Garry Dawson’s Journey From Teacher To Marketer
Here, the Hopeful Monsters marketer talks his shift from the classroom to the room wherever marketers congregate.
Scott Cam Urges Tradies To Prioritise Sun Protection
The Block host promoting sun protection to tradies. Also, don't try getting into the RSL after 6pm wearing high viz.
PubMatic Study: Advertising On Retail Media Is 50% More Effective Than Social Media
New study finds retail media 50% more effective than social. B&T says two-for-one Tim Tams trumps the lot.
From MOWING to life GROWING: Jim Penman launches ‘Life Coaching’ services
Can't decide on getting the hedges trimmed or finding a deeper meaning to life? You're in luck with this new venture.
Budweiser Brazil Turns Songs That Name Drop The Iconic Brand Into Spotify Ads
It's strange that Budweiser never found a market among beer-swilling Aussies. Then again, neither did the fluffy duck.
Effie Worldwide Strengthens Board With 6 New Members
B&T hopes everyone's wearing their Maseur sandals at the Effies, as it's standing room only at the next board meeting.
Special Enlist A Penguin Named Nigel In Latest Energy Campaign For Contact
Special unveils Nigel the penguin in work for energy provider Contact. Apparently Percy the peacock was booked.
Anya Taylor-Joy, Chris Hemsworth & George Miller Ignite Sydney For Epic Mad Max Launch
The Mad Max film franchise is Australia's cinematic gift to the world. That & Chris Hemsworth's near perfect cheekbones.
IAS Launches First-To-Market Integration With Roblox To Provide 3D Immersive Measurement
Always thought you could do with better 3D immersive measurement? Happy days are ahead here.
Fast And Furious: Top Gear Australia Launch Thrilled Motorheads, Car Entusiasts And Guests
B&T is still no closer to knowing who the new Stig is, except that she is a woman and a ridiculously fast.
TV Ratings (02/05/2024): Seven’s The 1% Club Wins The Night
The 1% club did not live up to its name when it comes to TV ratings last night.
TRA Welcomes Raft Of New Hires; Bolstering Expertise Across Markets
Insights and research agency TRA announces slew of new hires. Still no news on the return of marble wash denim, however.
CX Lavender Hires Boston Consulting Group’s Kim Verbrugghe as Chief Strategy Officer
CX Lavender announces new strategy hire and channels 'acoustic folk act at local RSL' for the publicity pic.
Opinion: Community standards, will they be the death of us?
This columnist is talking community standards. Sadly not those people who put dogs in trolleys in supermarkets.
Tegel gets heads bobbing with new free-range chicken platform
Sure, there's a lot of moral considerations when buying a chook. Yet, not as baffling as buying eggs or canned tuna.
Study: 66% of Aussie men believe masculinity is under attack
Two-thirds of Aussie blokes say masculinity's under attack. That said, sales of Solo lemon drink appear robust.
‘Equal Writes’: Canyon reveals new campaign and refreshed brand for women and non-binary writers
As this brand redesign again proves, nothing beats black on white. Well, white on black in this instance.
Icon Agency bolsters consumer and integrated offer with major hires
Icon Agency unveils new recruits. As press photo confirms office moustache competition now a lay-down misère.
Clemenger launches agricultural graduate program
Has Farmer Wants A Wife triggered an interest in dagging & hay balers? This grads program may resonate.
Levi’s Appoint UM As Global Media Agency For $217m Account
Levi's are the jeans for rockstars, models & the cool kids. Although that's not stopped dads from ruining their image.
QMS Nabs Sean Rigby From oOh!media
Things set to get spicy at the next Outdoor Media Association dinner and dance as a rival gets poached.
Bumble Reveals New Brand Identity To Usher In New Era Of Dating
It's ironic that all the dating apps market themselves as having no weirdos, freaks or mummy's boys like their rivals.