Kantar reveals rise in UK ad-supported streaming tiers

Kantar has released its latest Entertainment on Demand data, revealing shifts in British streaming habits for the fourth quarter of 2024.

The analysis shows a notable movement towards ad-supported streaming tiers, which accounted for 31% of new paid subscriptions, a significant increase from 10% in the previous year. The research also highlights the impact of new entrants such as Tubi on the competitive landscape of free ad-supported streaming TV services.

Netflix continues to attract a substantial share of new subscribers, with 69% opting for its ad-supported tier. The popularity of content like "Black Doves," the most enjoyed show according to the survey, has bolstered Netflix's subscription engagement. "The Day of the Jackal" on NOW TV and "Squid Game," the sixth most streamed show in December, also featured prominently in the streaming landscape.

Kantar's findings also indicate that Prime Video captured the largest share of new paying subscribers during the quarter, overtaking Apple TV+ and Disney+. Amazon's integration of shopping incentives and exclusive streaming content continues to strengthen its subscriber base.

"British viewing behaviour is showing noticeable shifts, with increased retention rates suggesting that the pressures of the cost-of-living crisis are starting to ease and brand loyalty is returning," said Dominic Sunnebo, Global Insight Director at Kantar. He noted that streaming providers are balancing quality content with diverse programming and pricing strategies to maintain growth.

Netflix's subscriber market share grew to 11.5% in Q4 2024, up from 10.1% the previous year, driven by its content offering and ad-tier subscriptions. The company's position as a leader in viewer satisfaction with its ad experience and audience engagement stands out in the VoD industry.

"While overall subscriber growth across most VoD platforms in the fourth quarter was relatively flat, Netflix continues to set the bar and is rapidly transforming into a powerhouse in the ad space," Sunnebo remarked. He praised Netflix's ability to match its content with branded advertising, appealing to both audiences and marketers.

Prime Video benefited from seasonal shopping surges, connected to events like Black Friday and Christmas, which influenced its jump to a 21.1% market share from 15.4% a year before. According to Kantar, Prime Video's exclusive sports rights have been pivotal in retaining subscribers.

Apple TV+ holds the second position in terms of new subscribers in Q4 2024. "There's no doubt that Apple's focus on locally produced British content has played a major role, with 42% of its most enjoyed shows in 2024 being of British origin," Sunnebo stated. The service's growing relevance within households is demonstrated by a rise in subscribers naming it as their most important VoD service.

With 19.6 million British households subscribing to at least one video streaming service, the report suggests a reduction in seasonal "cord-cutting" for Prime Video, pointing to improved subscriber satisfaction as likely evidence of easing economic pressures.