UK Streaming Subscribers Embrace Ad Tiers on Disney+, Netflix, and Prime Video

In the first quarter of the year, a solid one-third (33%) of new paid streaming TV subscribers in the UK opted for ad-supported tiers, a two-percentage point increase from the previous quarter. This information comes from Kantar’s recent Entertainment on Demand report, which highlights the growing popularity of ad-supported plans from Amazon Prime Video, Disney+, and Netflix.

What’s interesting is that a significant majority of new subscribers to these platforms are choosing the ad tier option. 65% of new Netflix subscribers went for the ad-supported tier in Q1, a big jump from 42% in the same quarter last year. Similarly, 56% of new Disney+ users also opted for the ad plan. It’s worth noting that 83% of new Prime Video subscribers were automatically placed on the ad tier, but it’s clear that there is a trend towards these more affordable options.

For many consumers, “value for money” was the top reason for selecting the ad-supported tier. This suggests that a good number of ad tier users are looking to be more budget-conscious when it comes to their entertainment choices. Interestingly, those on ad tiers were less likely to cancel their subscriptions, hinting that the lower monthly cost is a significant factor in keeping customers engaged.

When it comes to churning, Netflix is leading the pack with the lowest rate in the industry at just 2% per month. The popularity of ad-supported tiers is helping platforms like Prime Video, Netflix, and Disney+ attract audiences looking for more affordable ways to enjoy television and movies. Dominic Sunnebo, from Kantar’s Worldpanel, points out that British viewers are becoming more open to encountering ads on their streaming platforms.

In terms of new subscribers, Prime Video didn’t see its usual drop-off in Q1 and actually had the highest share of new sign-ups compared to other streaming services. The action-packed drama “Reacher” was the most-watched title in the UK during the first quarter, beating out popular shows like “Toxic Town” on Netflix and “1923” on Paramount+.

Apple TV+ is gaining ground quickly, with hits like “Severance,” “Slow Horses,” and “The Studio” drawing in 16% of new streaming service subscribers. Mubi, known for its collection of arthouse and independent films, saw an impressive 64% growth in its subscriber base in what they call their best-ever quarter. The subscription service attracted many viewers with the body-horror film “The Substance” during awards season, offering a promotional rate of £1 for three months.

As the streaming market heats up, it’s clear that viewers are looking for flexibility, value, and content that resonates with them. With fierce competition among streaming services, platforms are constantly evolving to meet the demands of their audience and provide the best possible viewing experience for subscribers.