In the past few months, there has been much ado about the state of the streaming industry given Netflix’ announcements regarding its first quarter of 2022 performance. In its latest study, Antenna identified a significant increase in Netflix cancels, which led it to wonder if there are other SVOD services benefiting from this Netflix churn.
Antenna found that every premium SVOD platform saw an increase in recent Netflix churners who subscribed to their service. In the first quarter, premium subscription video-on-demand services saw an over 35% increase over the fourth quarter in new subscribers who had canceled Netflix in the past month.
Paramount+, HBO Max and Peacock had both the highest growth rates - each over 70% quarter-over-quarter increases - and total number of new sign-ups who had recently canceled Netflix. Meanwhile, Starz, Hulu and Showtime saw the most modest increases in sign-ups from recent Netflix churners.
Over the years, Netflix cancelers have switched to an increasingly diverse set of premium SVOD services, as new service options have proliferated. In 2019, almost half of Netflix cancelers who switched to a new service chose Disney+ - despite the fact that Disney+ launched in November of that year. In the first quarter of 2022, Disney+ accounted for only 16% of those switches.
“This increasingly diverse make-up of the services Netflix’s switchers are choosing reflects the broader shift in market dynamics for the streaming industry: while streaming continues to grow, a more competitive set of offerings is resulting in more dynamic consumer preferences,” the report said.
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