The launch of ad-supported tiers by the leading streaming providers has led to 1 in 3 of new subscribers choose options that show commercials.
Kantar’s EoD study in Great Britain for the period between October and December 2024 show a significant shift towards ad-supported streaming options with ad tiering driving two-thirds (69%) of new subscribers on Netflix.
However, it was Prime Video that claimed the highest share of new paying subscribers in Q4, with Apple TV+ second and Disney+ third.
Dominic Sunnebo, Global Insight Director at Kantar, said: “British viewing behaviour is showing noticeable shifts, with increased retention rates suggesting that the pressures of the cost-of-living crisis are starting to ease and brand loyalty is returning.
“At the same time, the greater allocation of household budgets towards entertainment could also indicate that streaming services are successfully improving their services, finding the right balance between quality content, diverse programming and pricing. This is clearly reflected in the consistent growth and competition of the streaming sector.”
Historically, Amazon does well in the Christmas quarter, as shoppers sign up to use free Prime delivery and take advantage of the busy Black Friday and Christmas peak sales period. However, a drop in planned cancellations for Prime Video in Q1 2025, standing at 4.2%, indicated a reduction in seasonal ‘cord-cutting’ and suggested an easing of cost-of-living pressures.
Black Doves on Netflix was the most enjoyed show over Q4, followed by The Day of the Jackal on NOW TV (Sky).
Netflix had a good quarter with its market share of new subscribers hitting a peak of 11.5%, up from 10.1% in Q4 2023. Black Doves was the most streamed and most enjoyed title among British audiences.
“While overall subscriber growth across most VOD platforms in the fourth quarter was relatively flat, Netflix continues to set the bar and is rapidly transforming into a powerhouse in the ad space, said Sunnebo. “With a consistent subscriber share and an increasingly attractive ad-tier option, Netflix has become the platform of choice for marketers who can complement cinematic film and TV with like-minded branded content. It’s the perfect marriage of highly engaged audiences and embedded measurement capabilities that’s positioning Netflix to claim a greater share of linear TV and broadcast video on demand (BVoD) ad spend.”
The ad experience for subscribers is also integral to continued growth in this sector and Netflix is leading the VoD industry, showing the highest subscriber satisfaction scores across the number of ads, length of ads, relevance of ads and variation of ads. Netflix saw high levels of customer engagement over the final quarter of 2024, with over three in five (61%) of Netflix subscribers who also pay for other services saying it was the most important VoD service in their household.
