Streaming services take a hit as inflation forces Brits to choose
Streaming services take a hi...
Subscribe to Newsletter

Streaming services take a hit as inflation forces Brits to choose

19 April 2022
2377
2 min.
3
Streaming services take a hit as inflation forces Brits to choose

Britons are abandoning streaming services such as Netflix (NFLX) and Disney+ to save money as they suffer the biggest cut to their disposable incomes since the 1950s.

Streaming services boomed during the pandemic as people were forced to spend more time at home. With lockdown restrictions lifted, Britons canceled about 1.5 million subscriptions in the first three months of 2022, up by around 500,000 from the previous quarter. More than a third did so to save money, according to a new report by media consultancy Kantar.

Soaring inflation in the United Kingdom — which hit a 30-year high of 7% last month — has forced many households to cut back on non-essential spending, and subscriptions to video streaming platforms are firmly in the firing line.

"Households are starting to seriously prioritize where and how their disposable income is spent," the report said.

Kantar's report showed that the number of British households with at least one subscription fell by 215,000 during the quarter, with a record 38% of customers also planning to cancel subscriptions over the next three months due to money concerns.

"The proportion of consumers planning to cancel [subscription video on demand] services and stating the primary reason as 'wanting to save money' has risen to its highest ever level at 38%, up from 29% in Q4 '21," the report said.

Rising energy and food prices are expected to dent household disposable incomes by 2.2% per person over the next 12 months, according to the UK's Office for Budget Responsibility. That's the largest drop in living standards since 1956 when government records began.

Dominic Sunnebo, global insight director at Kantar's Worldpanel division, said the latest figures were "sobering" for streamers.

"The evidence from these findings suggests that British households are now proactively looking for ways to save, and the SVoD market is already seeing the effects of this," he said.

Viewers turned away from Disney (DIS) at a much faster rate than Netflix and Amazon (AMZN) as its customer churn tripled quarter-on-quarter to hit 12%.

Kantar estimates that Netflix — the world's largest streaming platform — has about 12 million subscribers in Britain, representing between 5% and 6% of its global customer base.

Source: https://edition.cnn.com/2022/04/18/media/streaming-subscriptions-fall-uk/index.html

Persons1 and Companies2 in the news

Global Consumer Insight Director at Kantar
1 place
Kantar Group
1 place
Section:
Rating companies
Instagram
18 Mention
ITV
12 Mention
Daily Mail
9 Mention
Labour Party
6 Mention
X (Twitter)
6 Mention
Channel 4
6 Mention
The Sun
6 Mention

ENGLAND NEWS


News GlobalEng.biz -this is the latest and most up-to-date information about the resonant events that have occurred in the region. The task of the resource's news feed is to convey to readers information about important events in business, politics, economics, healthcare, culture and other spheres of life in England with maximum accuracy and objectivity.
News GlobalEng.biz - this is coverage of the economic processes taking place in England, the latest news of public life, incidents and an overview of political events. English news is information about the activities of small and medium-sized businesses, the work of housing and communal services, the implementation of significant projects. The site's journalists describe not only the life of the region, but also talk about the current state of the English economy. Everything you need to know about innovations in the field of industry and agriculture, economy and government is collected in the "News" section on GlobalEng.biz.
News of England promptly informs the reader, shows the real picture and opens up topical topics. Communication with government structures and business gives us the opportunity to provide our readers with reliable, information-rich material.
The main page of the portal contains the key news of England!
Alena Potapova

Development Director
Population
8126963758
Died this year
24068096
Born this year
59211776