Consumers voice frustration as streaming market stagnates
Recent data reveals that rising consumer discontent poses a significant challenge to Australia’s Video-on-Demand (VoD) market.
The latest Kantar Worldpanel Entertainment on Demand (EoD) report reveals the average Net Promoter Score (NPS) for VoD services has declined between April and June 2024, now standing at a mere 16 points.
This trend reflects widespread dissatisfaction, with nine out of the top ten providers experiencing falling NPS scores due to a shortage of original content and a perceived lack of value for money, exacerbated by recent price hikes.
Despite general dissatisfaction, the overall VoD market remained stagnant quarter-on-quarter, with 7.8 million Australian households subscribing to at least one service during this period.
However, some platforms have managed to thrive in the flat market, with Kayo, Prime Video, and Paramount+ experiencing a boost in subscribers.
Sports provider Kayo reported an impressive 11% increase in sign-ups, while Prime Video and Paramount+ grew by 4% and 3%, respectively.
Moreover, as consumers seek to reduce their entertainment expenses, ad-supported video on demand (AVoD) services are becoming increasingly popular.
The data showed that 15% of Australian households now subscribe to an AVoD plan, a 9% increase since last year. The percentage has continued to increase throughout the past four quarters.
Interestingly, despite having their favourite shows disrupted by ads, Binge and Paramount AVoD customers are more likely to recommend the streaming services compared to those paying a premium for an ad-free experience.
The data found that consumers favour tailored ads, with entertainment and media a viewing preference among all AVoD streamers. However, Gen Z users prefer to see ads for tech and consumer electronics, and travel and tourism at is top of the list for those over 55s.
The top shows for this period have also been unveiled, with Netflix dominating the list, claiming four out of the top five spots.
Number one on the list was the popular alternative regency romance Bridgerton, followed by the drama Baby Reindeer. Prime Video’s apocalyptic Fallout was the third most enjoyed and viewed title, while Netflix’s Eric and The Gentleman claimed the last two spots.
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