Savings 2022: 1.5 million households cancel streaming service subscription to ‘save money’ | Personal Finance | Finance
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In the last ten years, streaming has slowly replaced traditional television as the primary method people watch programming. However, with energy bills and inflation on the rise, many households are opting to make budget cuts which could impact the likes of Amazon Prime, Netflix and Disney+.
A report by the Kantar Worldpanel has revealed that 16.9 million UK households had at least one subscription service by the end of the first quarter of od 2022.
Despite there being 1.29 million new subscriptions to subscription services over this period, this was beaten by 1.51 million cancellations.
When polled in Kantar’s report, over half a million of respondents said their reasoning was “money saving”.
There are multiple streaming services in the UK market with more, such as HBO Max, set to launch in the near future.
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Here is a breakdown of the standard monthly subscription costs for each of the country’s biggest services:
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Hypothetically, if someone were to cancel their Netflix subscription for a year, they would save £131.88.
Households are looking for more saving tips as inflation hits a 30-year high and energy bills are forecast to rise by almost £700 for this coming year.
Dominic Sunnebo, the global insight director at Kantar Worldpanel, shared how he believes this report shows that Britons are “proactively looking for ways to save” by cutting their subscription service budget.
Mr Sunnebo said: “With many streaming services having witnessed significant revenue growth during the height of Covid, this moment will be sobering.
“The evidence from these findings suggests that British households are now proactively looking for ways to save, and the streaming video on demand (SVoD) market is already seeing the effects of this.
“As a result, it’s now more critical than ever that SVoD providers demonstrate to consumers how their services are indispensable in the home in what has become a heavily competitive market.
“New marketing and content acquisition strategies will likely need to be deployed to support this and avoid further churn.”
Looking more specifically at the data, households in the UK were found to be more likely to keep certain services, such as Netflix and Amazon.
However, Disney+ saw its “churn-rate” triple from quarter to quarter as households chose to take their money elsewhere.
Churn-rate is the new term used by streaming services and media insiders to describe the rate at which subscribers have left their platform.
According to Mr Sunnebo, these latest figures stand to be a wake-up call for media giants who have launched streaming services over the last two years
He added: “Netflix and Amazon can be seen to be the last to go when households are forced to prioritise spend.
“Among homes that subscribe to streaming services, Netflix is consistently ranked number one in importance regardless of what platform it is put up against.
“But for the likes of Disney+, the implications are significant, as it must turn its attention to replacing existing services that households subscribe to now it is no longer always going to be seen as another incremental addition.”
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