Live sport is starting to have a significant impact on SVOD subscriber additions, with one-in-five new customers motivated by their desire to live-stream their favourite competitions, according to the latest Entertainment on Demand tracking data from Kantar, which covers the global video streaming market.
“Streaming services have been investing heavily in sports rights in recent years, and our EoD [Entertainment on Demand] data shows the highest ever percentage – 19% – of new streaming sign-ups coming from new and expanded sport catalogues,” the data and analytics firm observes. The company points out that VOD services are also placing a growing emphasis on sporting documentaries, appealing beyond the traditional live sports fan.
Kantar provides global mobile phone purchasing and usage trends, and is a leading global intelligence source covering advertising spend and viewing habits. Entertainment on Demand marks its expansion into tracking the subscription entertainment market, covering quarterly installed bases and combining that with purchase motivation insights. The new data comes from the Q3 2023 (July-September) report.
Disney+, Paramount+, Netflix and Apple TV+ all achieved strong subscriber growth in the quarter, but Paramount+ and Apple TV+ have emerged as leaders in attracting new subscribers, the latest data shows. “This signals a growing trend among consumers to explore fresh content beyond the industry's key players,” Kantar reports.
“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’.”
Kantar says these two streamers now have another compelling advantage in the U.S. market – sports content. “Paramount+ benefited from the return of the NFL, while Apple TV+ has scored with the MLS.” Apple TV+ now ranks second to Netflix when it comes to subscriber satisfaction with the quality of its shows, the EoD report reveals.
According to Kantar, the greatest challenge for all Netflix competitors remains turning initial hero title attraction into long-term subscriptions – and doing that amidst a 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,” the data and analytics company says.
Kantar believes Disney must build deeper connections with the more casual Disney fans to drive growth. “Currently, almost two-thirds of households subscribed to Disney+ do not use the service daily. They must ensure subscription delivers sufficient value [to this group].”
Netflix continues to assert its dominance, being present in two-thirds of streaming households, Kantar says. 49% of these households consider Netflix to be their primary streaming subscription, although this percentage has dipped from 53% in the same period last year. Netflix boasted the most popular titles.
Drawing on its Entertainment on Demand tracking, Kantar reports that Netflix's ad-supported tier has successfully attracted family audiences, broadening its viewer base. One-in-three new subscribers chose this option during the third quarter, the company notes.