The marketing data and analytics company Kantar has released its latest Entertainment on Demand (EoD) data on the global video streaming market.

The EoD global study highlights key trends as the competition within the VoD landscape continues to intensify, with the influx of new streaming services and subscription models leading to households frequently switching, replacing, and stacking services.

Key insights within the Video on Demand (VoD) market between July – September 2023 (Q3) include:

  • Disney+, Paramount+, Netflix and Apple TV+ all achieved strong subscriber growth.
  • Prime Video is pivoting to ad-supported content as the platform misses the mark on user growth.
  • Netflix boasted the most popular titles, with The Lincoln Lawyer taking the top spot, closely followed by Yellowstone and The Witcher.
  • Paramount+ and Apple TV+ emerged as leaders in attracting new subscribers, signalling a growing trend among consumers to explore fresh content beyond the industry’s key players.
  • Live sports continue to be a differentiator and growth driver, with one in five new SVOD subscribers motivated by their desire to live-stream their favourite competitions.
  • Netflix’s introduction of an ad-supported tier has successfully attracted family audiences, broadening its viewer base.
  • Kantar estimates up to 30% of Disney+ users are sharing their accounts with others. In response, Disney+ announced a forthcoming password-sharing crackdown, set to commence in Canada on November 1, 2023.

The study says Netflix continues to assert its dominance, being present in two-thirds of streaming households, whilst 49% of these households consider Netflix to be their primary streaming subscription. It also notes that Disney+, Paramount+, and Apple TV+ have emerged as the leaders in the share of new paid subscribers in Q3 2023. Disney+, in particular, experienced an exceptionally strong quarter, propelled by its most recent promotional price campaign in Europe, and the momentum generated by the company’s annual event, Disney+ Day – underscoring the effectiveness of their investments in core markets.

For the first time, Paramount+ and Apple TV+ claimed the top two spots for share of new paid subscribers, thanks to the popularity of their respective hero titles, such as ‘Yellowstone’ and ‘Ted Lasso’. Notably, Paramount+ and Apple TV+ now have a compelling advantage in the US market – sports content. Paramount+ benefited from the return of the NFL, while Apple TV+ has scored with the MLS. Apple TV+ now only ranks second to Netflix when it comes down to subscriber satisfaction with the quality of its shows.

Whether by including live sport or more effectively promoting their existing catalogue, the study says the greatest challenge for Netflix competitors remains turning initial hero title attraction into long-term subscriptions amidst the cost-of-living crisis. The proliferation of ‘boomerang subscribers’, who consistently rotate services that fail to capture sufficient household viewing time, is still on the rise. In an era where stacked subscriptions are prevalent, securing screen time is vital, notes the study.

On the Amazon front, the study notes that two-thirds (68%) of Prime Members use and engage with Prime Video, with the lowest recognised usage in Britain and the highest in Spain. Emerging signs that suggest Prime Membership growth is slowing, which in turn impacts Prime Video’s growth potential. The upcoming launch of an ad-supported service underscores its pursuit of additional revenue streams from Prime Video, which, whilst still growing, still lags significantly behind Prime Delivery in terms of importance within households. Encouraging existing members to consume Prime Video content is likely to be a key focus on the back of slowing Prime subscription growth.

For more information you can access Kantar’s interactive data visualisation here.

Michael Burns

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