In the United Kingdom, consumers appear to be tiring of subscription streaming video-on-demand. New data from Kantar found that 1.66 million Brits dropped their SVOD service in the second quarter (ended June 30). That was up from 1.5 million subs who dropped service in Q1.
There were more than 16.4 million SVOD households with at least one service in the U.K. through the midyear. But with inflation topping 9% in the region through May, a Kantar survey found respondents “wanting to save money” as a primary reason to drop service.
The trend is concerning for markets heavyweights Netflix, Amazon Prime Video and Disney+, as well as Paramount+ and Peacock, which are establishing European operations. HBO Max is coming to the U.K. due to existing HBO distribution rights held by Comcast’s Sky satellite service operator.
“In terms of the TV streaming market, the decline in [streaming video] subscriptions is being driven largely by younger ages,” Dominic Sunnebo, global insight director, said in a statement. “Although, it is worth noting that this group often have a wider variety of entertainment sources, including BBC iPlayer and free services such as TikTok, suggesting that this age is still interested in viewing TV streaming, just for a lower cost.”
Meanwhile, while Netflix’s “Stranger Things” and Disney’s “Obi-Wan Kenobi” topped content choices, Kantar found that subscriber satisfaction for Disney+, Apple TV+ and Comcast-owned Sky’s NOW streaming service was increasing — while Netflix’s subscriber satisfaction was decreasing.
Netflix, which reports Q2 fiscal results July 17, is predicting a net global loss of 2 million subs.