Netflix and Disney+ outperform as Prime Video growth slows
OCTOBER 25, 2023 00.01 EUROPE/LONDON BY JULIAN CLOVER

Disney+, Paramount+, Netflix and Apple TV+ all achieved strong subscriber growth, according to the latest Kantar Entertainment on Demand (EoD) data on the global video streaming market.

Netflix continues to continues to dominate, and is present in two-thirds of streaming households, whilst 49% of these households consider Netflix to be their primary streaming subscription. Whilst this percentage has dipped from 53%, compared to the same period last year, the platform continues to perform strongly despite half of Netflix households subscribing to four or more services last quarter.

Password-sharing restrictions has spurred further growth, particularly in the United States and Germany.

However, it is Disney+, Paramount+ and Apple TV+ that have emerged as leaders in new subscribers. Kantar estimates up to 30% of Disney+ users are sharing their accounts with others. In response, Disney+ announced a forthcoming password-sharing crackdown, set to commence in Canada on November 1, 2023.

Disney+, in particular, experienced an exceptionally strong quarter, propelled by their most recent promotional price campaign in Europe, and the momentum generated by the company’s annual event, Disney+ Day

A persistent challenge faced by Prime Video users is the service’s interface. Despite substantial changes made just over a year ago, subscribers still find it less user-friendly than Netflix. The Amazon service is planning a move to ad-supported content to improve growth. Two-thirds (68%) of Prime Members use and engage with Prime Video, with the lowest recognised usage in Britain and the highest in Spain.

There are emerging signs that suggest Prime Membership growth is slowing, which in turn impacts Prime Video’s growth potential.

For the first time, Paramount+ and Apple TV+ claimed the top 2 spots for share of new paid subscribers, thanks to the popularity of their respective hero titles, such as Yellowstone and Ted Lasso. Notably, Paramount+ and Apple TV+ now have a compelling advantage in the United States market – sports content. Paramount+ benefited from the return of the NFL, while Apple TV+ has scored with the MLS. Apple TV+ now only ranks second to Netflix when it comes down to subscriber satisfaction with the quality of its shows.