Netflix, Disney+ and Amazon Prime subscriptions in high demand, despite crackdown on password sharing
4 out of 5 households say that entertainment subscriptions enable them to maintain ‘normality’ in the household during the continuing cost of living crisis, according to a new survey from Zuora
As we step into 2024 many households will be looking to ‘declutter’ their direct debits of unwanted outgoings, but research from Zuora, the subscription management platform, shows that home entertainment subscriptions are the least likely to be cancelled. In fact, only 7% of respondents claimed to have cancelled their streaming subscriptions in the past year, showing that consumers value home entertainment more than ever, even with the crackdown on password sharing.
Public data available via Google Trends also shows that searches for streaming platforms like Netflix (+550%), Now TV (+200%), Disney Plus premium UK (+120%) and Amazon Prime Video (+100%) have increased, resulting in a +250%* increase in searches for ‘subscriptions’ as a topic. 84% of respondents in Zuora’s research say they worry less about their finances when they have regular, recurring payments that are easy to cancel, so it’s no surprise that we’re seeing rising demand in this sector, especially as households try to realign their finances at the start of a new year.
With interest in streaming peaking amongst UK consumers, it looks like entertainment subscriptions are going to play a massive part in the consumption of home entertainment for UK households into 2024. In fact, Zuora’s research also showed a staggering 4 out of 5 UK households see entertainment subscriptions not just as optional indulgences, but rather as a non-negotiable cost, even with today’s economic uncertainties.
The research further highlights that ‘home entertainment’ is leading the subscriptions race, with an impressive 82% of the 2,000 respondents surveyed saying they have at least one entertainment subscription in place. Interestingly, over three quarters (83%) of these individuals believe that maintaining these subscriptions, whether it be Disney+, Netflix or Amazon Prime Video, helps them retain some normality from their lives pre-economic crisis, such as family film nights.
Zuora’s research shows that almost a third of consumers who are looking to gain more value on their investment are turning to a subscription service that is personalised to them (30%) such as subscription bundles, which combine multiple streaming platforms into one app and one monthly direct debit. In fact, 33% of respondents said they already use Sky Stream as their one stop shop for streaming.
Google Trends data is also showing a spike in interest for searches of bundling options, with ‘Sky Stream Deals’ seeing an increase in searches of +120%*. Companies have been known to introduce ‘pick-and-choose bundles’, which can combine multiple subscriptions offerings into one, tailored to what customers want. By ‘bundling’ multiple subscriptions together, companies can offer a more cost-effective option to the consumer, reducing the likelihood of cancellations.
“As purse strings tighten and consumers try to cut costs, ‘non-essential’ services are often the first to go. However, as we go into the New Year, this data highlights that families are valuing their subscriptions more than ever” said John Phillips, General Manager, EMEA at Zuora.
