Netflix and Spotify lead Kantar’s on-demand entertainment service

On-demand entertainment is already a well-established service in the US and UK, and customer demand has spurred its expansion into Germany and then Australia, according to the data, brands and research firm. Kantar information.

Kantar collected from a sample of new music and video subscriptions for three months. Here are some highlights from the Australian pilot:

1.4 million households added at least one new video subscription service within three months, or nearly 14% of households.

Netflix accounts for nearly 22% of new subscriptions, although Amazon Prime Video is not far behind at 17%, with Disney + at 12%. Stan and Stan Sport collectively account for 8.5% of new subscriptions over the three-month period, while Foxtel’s three brands Binge, Foxtel Now and Kayo account for 12.2%.

440,000 new subscriptions were taken out by Gateway subscribers, which is completely new in the category. Netflix is ​​usually the gateway subscription with friends / family being an important source of information before signing up.

583,000 were stacked subscribers, adding this new service to their existing subscriptions – more than half of Binge subscriptions were stacked and nearly half for Stan. The main point of marketing contact for both service providers was the offer of a free trial.

The average number of VoD subscriptions held is 3.9, with only Netflix, Amazon Prime Video, Disney + and Stan on par or below average.

18% of new subscribers canceled an existing digital streaming subscription in order to purchase a new one. This figure rose to 25% and 21% respectively for the Binge and Britbox services.

Being able to “watch content when I want” was the reason streamers bought a subscription, cited by 30% of households. However, purchasing a smart TV to allow easy access to digital content was a trigger for a quarter of first-time streamers, while 11% took out a VoD subscription to replace their cable TV service. This is obvious to those who have subscribed to a Britbox service.

Consumers love Netflix and YouTube Premium, which is reflected in their high Net Promoter Scores (NPS) of 49ppts and 44ppts respectively, compared to a market average of 30ppts. Netflix’s satisfaction factors are ease of use, amount of original content, and value for money. For YouTube Premium, this is more about the ability to download content than value for money (YouTube Premium customers are almost twice as likely to watch content on the go or on the go as the subscriber. Average VoD).

Disney + NPS is just above average at 31ppts, with content that elicits great satisfaction, whether it’s the variety of classic TV shows or movies, the quality of the shows, or the number of new movies. (two top 10 titles most recommended by friends and family are Disney +, namely Loki and Black Widow, while The Mandalorian is in the top 10 most liked content).

In contrast, the NPS ratings for Amazon Prime Video and Stan among new subscribers are below average at 23ppts and 20ppts respectively. Analysis of NPS diagnostics in other markets operating the on-demand entertainment service often shows that NPS increases after about three months of using the service, once consumers have learned to navigate the content, which may well be the case with new Amazon customers, where there are potentially issues related to the TV interface and usability (for finding TV content) with satisfaction on value for money also lower than the mean.

For Stan’s customers, value for money and the amount or variety of content available drives satisfaction and customers love the ability to watch content on multiple different devices / screens. However, the quality of the shows and the quality of the recommendations on what to watch next seem to be causing some dissatisfaction and this is reflected in the fact that customers give a lower than average score when they see themselves having the service for a long time. Incidentally, Britbox got the highest score on this factor at 8.3 / 10.

1.1 million households added a new music subscription service in three months over 10% of households.

Spotify accounts for 26% of new subscriptions, although about half use a free version and an additional 7% get a free trial. One in 5 has opted for an Amazon Music Unlimited (AMU) service, with over 60% paying for this service. Apple lags behind with a 13.6% share, although it manages to secure about a quarter of new subscribers on an annual subscription, reducing the immediate risk of unsubscribing.

Gateway subscribers were able to take 580,000 subscribers, landing for the first time in the category. Spotify is typically the gateway subscription, with 53% of its new subscriber base being completely new to the category. They offer a free trial and word of mouth through friends / family is the primary marketing touchpoint before signing up with Spotify.

570,000 are Stacked subscribers. Heavy investments in advertising as well as online reviews are the main points of contact for this group.

9% of new subscribers canceled an existing digital streaming subscription in order to switch, rising to 11% and 13% respectively among YouTube and SoundCloud services.

Free trials encourage stacking, cited as a key trigger by 22% of those adding to their existing services, while acquiring a wireless speaker is a trigger for 14% of first-time streamers . Access to a wider variety of music is the primary trigger for new Spotify subscribers.

Value for money and the variety of podcasts available are relatively more important buying engines among those who sign up to AMU, while for Spotify customers it is more about the variety of artists and news. available versions, the quality of the streaming sound and, above all, the music platform. that their friends use.

Spotify customers love their service the most, resulting in a high Net Promoter Score (NPS) of 38ppts, compared to a market average of 25ppts. The main factors of satisfaction with Spotify are the artists available, the sound quality and the interface of the smartphone. The NPS for AMU is below average at 20ppts. While providing the value for money customers signed up for, advocacy is generally slowed down by the smartphone interface, the inability to follow or interact with friends, and a poor onboarding experience compared to others. platforms.

Spotify and YouTube Music customers tend to be interested in a greater variety of music genres compared to Apple Music and AMU customers, with rock being particularly weak among the latter two. For more specialized high-fidelity streaming providers such as Tidal or QoBuz, interest is relatively higher in genres such as classical, country, or jazz / blues music.


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Victor L. Jones