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Data: 20% UK SVoD subs considering cancelling subscriptions

October 19, 2022

As the cost-of-living crisis deepens, 20 per cent of SVoD customers are considering cancelling their subscriptions, with 19 per cent agreeing that these platforms are ‘a luxury I can live without right now’.

The research, carried out by Yonder, reveals that 39 per cent of UK SVoD homes are worried enough about rising prices to be actively looking to reduce their overall spending. Those aged 35-54 are most concerned, as are those of higher social grades.  

When comparing those subscribers who are considering cancelling to those who are happy to keep paying; the insight shows that potential cancellers are: 

  • almost twice as likely say ‘all SVoD services look the same’
  • almost twice as likely to find SVoD services ‘difficult to use’
  • almost twice as likely to say they ‘struggle to know which programme is on which platform’ 
  • almost twice as likely to ‘not really understand the difference between the services’ 

The research also finds that almost a third of subscribers (29 per cent) would be ‘much more likely to cancel’ if the price goes up. SVoD service providers will need to be careful therefore that any price rises net positive revenue growth, as they will likely drive significant churn. Of the big three SVoD services: Netflix, Prime Video and Disney+, the research shows all to be threatened with very similar levels of cancellation risk at around 16-18 per cent of their current subscriber base. And these are at the lower end of the spectrum for the industry. Pay-TV VoD products and the other SVoD services face as many as 20 per cent to 50 per cent of their current subscriber bases considering cancellation.

Cheaper advertising-funded tiers could be both part of the solution and part of the problem. Versus the 20 per cent of homes who are considering cancelling, some 17 per cent of homes would be interested in cheaper ad-funded tiers. However, these are not all from the same demographics. Appeal for cheaper tiers is seen across all groups, including currently satisfied subscribers not looking to cancel, as well as non-subscribers looking to sign up. SVoD providers will therefore need to be careful to accurately model the net impact of introducing cheaper tiers.

Manfred Abraham, co-CEO, Yonder Consulting, commented: “There is a clear opportunity here for SVoD providers to review their consumer propositions and competitor differentiation. This can both help to make a significant difference to the short-term decisions of at-risk customers whilst ultimately leading to a more customer-led strategy which adapts to the changing landscape.” 

Categories: Articles, Consumer Behaviour, Premium, Research, VOD

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