Streaming subscriptions continue to dwindle as Brits feel the pinch
The downward spiral for streaming services continues this quarter as more and more Brits cancel their subscriptions due to the cost of living sting.
In fresh data from Kantar, the number of households subscribing to at least one video streaming service fell 488,000 to 16.42 million between April and June this year.
It comes after 215,000 Brits switched off their subscriptions at the start of the year just as inflationary pressures began to impact household budgets.
Over a third of people cited ‘wanting to save money’ as the reason for pulling the plug on subs in both quarters.
The trend was echoed by new KPMG data yesterday, which also found that nearly a third (29 per cent) of people have borrowed money or used their savings to cover the costs of media subscriptions since the beginning of 2022.
It found that 17 per cent of consumers stopped subscribing to a video streaming service to pay for higher food bills this year.
Commenting on these findings, Head of TMT KPMG UK Ian West said: “While consumers and media companies alike are feeling the pinch, organisations’ customers will value them in the long term if alternative payment options or plans can be introduced to help them continue to use their services – especially for essentials such as mobile.
Unfortunately, the current crisis is unlikely to disappear anytime soon, and I hope that this industry adapts to support their customers in times of difficulty.”
Just last week streaming giant Netflix announced that it would be launching a new cheaper ad-supported offering in partnership with Microsoft. This comes after bleak user numbers in the first quarter and warnings for the coming period.
Analyst at Enders Analysis Tom Harrington warned that such a move could undermine the “purity” of big streamers, and told Morning Wire that the major selling point of no adverts and low prices are “now being eroded before our eyes
Commenting on the research, Kantar’s Global Insight Director Dominic Sunnebo said: “In terms of the TV streaming market, the decline in subscriptions is being driven largely by younger ages.
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”.
Sunnebo did note that Netflix’s fresh partnership with Microsoft to create a cheaper ad-supported offering could bode well for the US streamer.