The European video subscription market is heading for a period of fewer growth opportunities, according to consultancy Oliver Wyman.
Despite a rise in the percentage of consumers likely to increase their video subscriptions this year there is now a clear trend that fewer will do so each year. According to the company’s annual Global Consumer Survey, the number of subscription renewals is falling in all EU countries except Spain and the United Kingdom (UK). On the other hand, the percentage of consumers who want to reduce their number of subscriptions is also lower (-6% versus 2023) in every country.
The survey, which included 7,000 respondents in Spain, Italy, France, Germany, and the UK, did have some bright spots. There are still opportunities to grow and counter some of the negative trends. Countries with lower overall penetration and a high number of consumers without any subscription have a margin to improve, and the “super user” segment offers another avenue for growth.
In contrast to the overall slowdown in the EU, Spain and the UK expect to maintain or expand overall subscription numbers. This is due to the “super user” segment, defined as consumers with more than three video subscriptions. In addition, France and Germany have the lowest numbers of “super users” and adoption rates in Europe, indicating potential growth and new consumer acquisition in those countries.
Consumers report several compelling reasons for unsubscribing from their current video subscriptions. The most common reason is limited content, closely followed by increasing prices. Having too many subscriptions or experiencing challenges in their user experience are additional factors leading consumers to unsubscribe.
Source: broadbandtvnews.com
