The United Kingdom’s video streaming market showed a tentative recovery in the fourth quarter of 2022, with subscriber numbers on the rise after a sharp decline earlier in the year, when cash-strapped households sought to save money, according to data released on Monday by the industry. According to market researcher Kantar, between October and December, the number of British households with at least one paid video streaming service increased by 55,000 to 16.24 million, or 56% of all households.
The growth was primarily driven by Prime Video, AppleTV+, and Paramount+, as opposed to Netflix. 5% of British households, according to Kantar, signed up for a new streaming subscription in the final quarter of the year.
The recovery followed a 12-month period in which one million British households abandoned the subscription video-on-demand market in favour of spending money on necessities such as food and energy. “Prime Video had a strong fourth quarter, with more households signing up for Prime memberships and using the Prime delivery service in advance of the Christmas holidays,” said Dominic Sunnebo, global insight director at Kantar, Worldpanel Division.
However, the recovery may be temporary, according to Kantar. The percentage of consumers planning to cancel one or more video-on-demand services in the next quarter increased to 12 percent from 10 percent in the third quarter of 2022, indicating that short-term subscribers seeking to cover the holiday season may soon cancel.
Obtaining an accurate gauge of the British economy is currently difficult. Inflation-stricken consumers in the United Kingdom reduced their spending in December by the greatest amount in at least 25 years, and consumer confidence is at an all-time low.
Several major British retailers, including Tesco, Sainsbury’s, and Marks & Spencer, reported stronger-than-anticipated Christmas sales, while airlines reported robust summer bookings. Additionally, unemployment is near its lowest level in nearly 50 years.