The pandemic’s first months were characterized by a spike in stay-at home orders and temporary shutdowns of many businesses. It seemed that Americans could not get enough video streaming services.
We all fell prey to the lure of movie theatres and limited entertainment choices. Already binged Tiger King on Netflix? Join Disney+ so you could start The Mandalorian. Subscription to HBO Max You might also consider AppleTV+.
The stay-at home orders began to ease slowly, but binging was still a well-established habit. New must-see series kept bowing (Ted Lasso! Wandavision! Mare of Easttown!) or returning (Cobra Kai!). No one was ready to abandon their video addictions during the long winter and spring.
It seems that the tide has turned. Kantar Media recently reported that the number of U.S. subscribers to video dropped from 12.9% last quarter to 3.9% in this year’s second quarter. This was the lowest number of new subscribers in the United States since Kantar Media began the survey, which is really not that far back, as it’s only the second quarter 2020. It’s still a noteworthy trend.
This signal is that the world may be moving out of the “pandemic cocoon” stage where Americans stayed in and ate too much. People started to travel and went out to the movies this spring. This markedly changed from previous twelve months. The data shows this.
Kantar’s research found that the number of households in America that have video subscriptions is steady at 74.6%. That amounts to approximately 95.8million households. While people continue to watch the channels that they already have, they aren’t subscribing at the same rate as last year.
This could be due to many reasons.
First of all, most people are happy with their current subscriptions and don’t feel the need for new channels.
The second is that the rapid-fire stream of launches between late 2019 to early 2020 when Disney+ and AppleTV+ launched, as well as HBO Max and Peacock, has finally stopped. The viewers have been able to taste and decide on their favorite shows.
The third factor is that the growth in Netflix subscribers has slowed which affects overall numbers.
According to the report, “Netflix is not doing well in attracting new subscribers this quarter.” The report notes that Netflix has a lower share of SVOD-enabled homes than 74%, dropping to 67% in Q2 2020. Similarly, 6.0% of new SVOD subscribers fell from 13% last year.
Amazon Prime Video climbed to number one in new subscriptions, a position it held for the third quarter of 2020. According to the report, Amazon scored higher than the overall market in touchpoints like ease-of-use (48% vs. 44%), original content (44%) and value-for money (44% is vs.41 ).