AppleTV+ was the fastest growing major SVOD service in the first quarter, according to Kantar’s latest Entertainment on Demand (EoD) data.
In terms of percentage subscriber growth, Netflix had a strong Q1 in Europe and Australia, along with local services such as Movistar+ in Spain, Joyn Plus+ in Germany, and Kayo in Australia all seeing elevated levels of new paid subscriber share. However, Prime Video’s introduction of an ad-supported tier was met with resistance from their existing user base, dropping subscribers after a strong Q4.
Reacher on Prime Video was the most enjoyed title in Q1’24 among all streamers, followed by Fool Me Once on Netflix, and Yellowstone.
Andrew Skerratt, Global Insights Director at Kantar Worldpanel comments on the findings, “The latest data from Q1 reveals a significant shift in the global VoD landscape. AppleTV+ lead with remarkable subscriber growth, while local services like Movistar+, Joyn Plus+, and Kayo excelled in their markets through highly tailored content. Despite mixed reactions to new ad-supported tiers, notably from Prime Video users, Netflix continues to excel in retention and subscriber advocacy. These developments highlight the evolving consumer preferences and the critical need for streaming services to adapt swiftly to maintain and expand their viewer base.”
Prime Video introduced ads in Q1 2024, offering an ad-free option for an additional fee, while other operators introduced new ad tiers below their standard offering.
Speaking to Broadband TV News last week a Prime Video spokesperson disputed Kantar’s findings. “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 says that despite Prime memberships being unaffected, this change led to a drop in Prime Videos user base. Prime Video has the highest level of subscribers displaying an active dissatisfaction with the number of ads being served, compared to other major services. In addition, the combination of recent price rises, and ads has also led to drop in net satisfaction with value for money among the Prime Video subscriber base, at 25% currently (vs 29% in Q4’23), though still ahead of its competitors.
In contrast, Netflix continues to excel, with strong retention rates and the highest subscriber advocacy levels in 18 months with an NPS of +42, indicating a solid and growing subscriber base.
