Landmark UK Research Shine Spotlight on Streamer Charn – Deadline

The churning is real.

A landmark study by UK media consultancy Omdia found that 45% more streaming services were canceled in the UK in the last 12 months as more deep-pocketed players entered the market, but re-subscriptions increased by a whopping 84%.

Along with Netflix and Amazon Prime, consumers gained access to Discovery + and Peacock for the first time in 2021, when Disney + will firmly establish itself as a key player and Paramount + will launch very soon.

As a result of this injection, 20% more subscribers canceled their streaming service than in the previous year.

However, according to Omdia, the number of people who have been canceled quickly has increased by 84%, which shows that high churn does not mean that subscriptions are being canceled completely.

In fact, the number of subscriptions to video services in the UK increased by 11% last year, with Disney + the big winner at 21%, surpassing Netflix’s 8%.

At 15.5M, Netflix still has the most comfortable UK subscriptions, followed by Amazon Prime Video with 10M and the fast-growing Disney + with 7.5M. Overall, four out of five people in the UK have family membership.

Revealing the study at the Connected TV Summit, Maria Rua Aguette, senior director of Omdia, said that people in the UK are still spending more on streaming services despite the cost of living.

“In the face of rising costs, consumers prefer to reduce costs other than their own entertainment at home,” he added. “In fact, the survey revealed, other spending cuts have allowed them to subscribe to additional services.”

Looking to the future

And at the forefront of the research was the good news for Netflix worldwide, which predicted that the streamer would stop competing with Disney + in five years for having SVoD in the world’s most-subscribed.

Omdia says Netflix will have about 260M global subs by then, about 240M before Disney +, although Disney + will grow even faster.

The news will be a welcome and rare boon for Netflix after a difficult few months where it has reported the lowest subscriber growth for a decade and laid off dozens of employees.

Amazon Prime Video will be above 150M globally by 2026, the study said, adding that the soon-to-be-combined HBO Max Discovery + offers and is even ahead of Peacock and Paramount +.

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