Global video-on-demand (VOD) subscriptions surged in the first quarter of 2025, with the market adding 8.4 million new customers across major platforms—marking the highest Q1 growth in five years, according to Kantar’s latest Entertainment on Demand report. The uptick in subscriber volume is largely attributed to a combination of strategic content releases, bundling offers, and aggressive discounting, particularly in the U.S. and key European markets.
In the U.S., where the competition remains fierce, Amazon Prime Video led the quarter in new customer acquisitions, followed closely by Netflix and Hulu. Disney+, Peacock, and Paramount+ also registered growth, driven in part by bundling strategies and targeted promotions. Kantar’s data shows that 69% of new subscribers in the quarter signed up through a promotional deal—a significant increase compared to previous quarters.
Global churn rates slightly decreased in Q1, falling to 4.6%, as consumers responded positively to new releases and bundled services. Netflix experienced the lowest churn among all major platforms, maintaining high retention through a steady pipeline of content and a user-friendly experience. Meanwhile, Apple TV+ saw a notable rise in its share of new sign-ups in the UK, largely driven by high-profile titles like "Masters of the Air."
Dominic Sunnebo, Global Insights Director at Kantar, noted that the VOD industry is now adapting quickly to evolving consumer behaviors. “We’re seeing platforms experiment more boldly with pricing, content formats, and promotional bundling, which is starting to pay off in terms of acquisition and retention,” he said.
The top drivers for new subscriptions in Q1 were access to specific content and attractive pricing. According to the report, 37% of new users cited exclusive content as the main reason for signing up, while 24% pointed to price discounts. Word of mouth also played a role, influencing 14% of new users globally.
While Netflix and Amazon maintain strong leadership, new dynamics are emerging. In the U.S., for example, Peacock and Paramount+ made notable gains by offering bundled packages with live sports and other value-added features. In Germany, Netflix remains dominant, but local platforms are showing resilience through original content offerings and regional pricing models.
The report underscores a turning point in the streaming economy, where growth is once again accelerating after several quarters of plateauing. The combination of flexible pricing, broader content strategies, and an increasingly sophisticated promotional approach is reshaping the competitive landscape. As Sunnebo concluded, “Consumers are becoming more selective, but also more open to trying new platforms—if the value proposition is clear.”
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