Research: SVoD demand high despite password crackdown
January 10, 2024
As the new year begins, many households will be looking to ‘declutter’ their direct debits of unwanted outgoings, but research from subscription management platform Zuora shows that home entertainment subscriptions are the least likely to be cancelled. In fact, only 7 per cent of respondents claimed to have cancelled their streaming subscriptions in the past year, showing that consumers value home entertainment more than ever, even with the crackdown on password sharing.
Public data available via Google Trends also shows that searches for streaming platforms such as Netflix (+550 per cent), NOW (+200 per cent), Disney+ premium UK (+120 per cent) and Prime Video (+100 per cent) have increased, resulting in a +250 per cent increase in searches for ‘subscriptions’ as a topic. 84 per cent of respondents in Zuora’s research say they worry less about their finances when they have regular, recurring payments that are easy to cancel, so it’s no surprise that we’re seeing rising demand in this sector, especially as households try to realign their finances at the start of a new year.
With interest in streaming peaking amongst UK consumers, it looks like entertainment subscriptions are going to play a massive part in the consumption of home entertainment for UK households into 2024. In fact, Zuora’s research also showed that four out of five UK households see entertainment subscriptions not just as optional indulgences, but rather as a non-negotiable cost, even with today’s economic uncertainties.
The research further highlights that ‘home entertainment’ is leading the subscriptions race, with an impressive 82 per cent of the 2,000 respondents surveyed saying they have at least one entertainment subscription in place. Interestingly, over three quarters (83 per cent) of these individuals believe that maintaining these subscriptions, whether it be Disney+, Netflix or Prime Video, helps them retain some normality from their lives pre-economic crisis, such as family film nights.
Zuora’s research shows that almost a third of consumers who are looking to gain more value on their investment are turning to a subscription service that is personalised to them (30 per cent) such as subscription bundles, which combine multiple streaming platforms into one app and one monthly direct debit. In fact, 33 per cent of respondents said they already use Sky Stream as their one stop shop for streaming.
Google Trends data is also showing a spike in interest for searches of bundling options, with ‘Sky Stream Deals’ seeing an increase in searches of +120 per cent. Companies have been known to introduce ‘pick-and-choose bundles’, which can combine multiple subscriptions offerings into one, tailored to what customers want. By ‘bundling’ multiple subscriptions together, companies can offer a more cost-effective option to the consumer, reducing the likelihood of cancellations.
“As purse strings tighten and consumers try to cut costs, ‘non-essential’ services are often the first to go,” notes John Phillips, General Manager, EMEA at Zuora. “However, as we go into the New Year, this data highlights that families are valuing their subscriptions more than ever.”