Brits cancel streaming services amid cost of living crunch
Britain’s streaming boom has come crashing down as more than 1.5 million customers cancelled subscriptions in the first quarter of the year.
Entertainment businesses have found themselves on the front line of the cost of living squeeze with analysts watching its effects on the entire leisure sector.
Streaming subscriptions soared during the pandemic lockdown but the rise in inflation has hit household budgets.
Now, Apple TV+, Disney+ and Britbox were the main sufferers, whilst Netflix and Amazon Prime have become a staple for UK homes and are less likely to face cancellation, say market analysts at Kantar. More than half of the terminations attributed to ‘money saving’.
While 58% of households still retain at least one paid-for streaming service, the number that do so fell by 215,000 in the first quarter of this year.
The Kantar Worldpanel report found that 16.9 million UK households had at least one subscription service at the end of the first quarter.
While there were 1.29 million new subscriptions to SVoD services in the UK in the first three months, this was outweighed by 1.51 million cancellations.
Prime Video’s thriller series, Reacher, and Netflix dramas Ozark and Inventing Anna proved to be the most popular shows on SVoD services in the UK in the first three months of 2022.
Despite being seen as a ‘must have’ service, Netflix is expected to report its slowest quarterly revenue growth in nearly eight years today.
It recently forecast subscriber growth numbers to slow down, adding only 2.5m new customers from 4m a year before.