Is the growth of streaming media peaking? Inflation reduces spending, with a record number of British households canceling subscriptions

華爾街見聞 ·  04/18/2022 17:17  · Trending

High inflation and a persistent fever have put great pressure on British families. In order to cope with the soaring cost of living, they have to cut unnecessary expenses, with video subscriptions bearing the brunt.

According to market research firm Kantar, in the first three months of this year,British consumers have cancelled about 1.5 million video subscription accounts, a record levelPlatforms, including DisneyPlus, Apple TV Plus, and Now, are affected

Based on interviews with 14500 people, Kantar foundAbout 3 per cent of British households subscribed to TV programmes in the first quarter, but the subscription rate dropped significantly compared with 4.2 per cent in the same period last year.

The researchers found that saving money was the main reason for canceling TV shows, with adults paying a licence fee of 159 pounds a year, so they became particularly cautious about repaying to watch TV.

It is worth mentioning that in markets, including the UK, several TV suppliers have raised prices, in part to compensate for rising labour and facility costs. Netflix, for example, recently made its second round of price increases in the UK within 18 months, raising its standard monthly subscription fee from £10 to £11.

Data released last week by the Office for National Statistics showed that energy, clothing and food prices soared, pushing inflation to a 30-year high in March.

As more and more families unsubscribe to videos, there is growing concern that the streaming boom fuelled by the epidemic is over.

Netflix Inc's share price has fallen 43 per cent so far this year as the number of global users has disappointed investors.

Although 58% of households retain at least one streaming service, down 1.3% from the end of 2021, the cancellation of the service shows on the other hand that viewers are becoming more picky about streaming platforms.

At the same time, the choice of British audiences is also expanding, and the competition of streaming media is becoming more fierce. At the end of last year, NBC Universal, a subsidiary of media giant Comcast Corp, launched a streaming service in the United States, which was launched on Sky TV and NOW platforms in the UK and Ireland. Scandinavian streaming Viaplay plans to launch in the UK this year.

Dominic Sunnebo, director of Kantar Global Insight, said the results of the investigation broke the cold water for streaming providers. "in this very competitive market", streaming services must prove their value to consumers.

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