In the past few months, there’s been much ado about the state of the streaming industry given Netflix’ announcements regarding Q1’22 performance. Antenna analyzed the contributing factors to Netflix’ Q1’22 results (link), and the behavior of their Q1’22 churned subscribers (link). We identified a significant increase in Netflix Cancels, which begs the question: are other SVOD Services benefiting from this Netflix churn?
Switching Rates for Netflix Churners by Service
Antenna found that every Premium SVOD Service saw an increase in recent Netflix churners who subscribed to their service. In Q1, Premium SVOD services saw an over 35% increase over Q4 in new Subscribers who had cancelled Netflix in the past month.
Paramount+, HBO Max and Peacock had both the highest growth rates - each over 70% QoQ increases - and total number of new Sign-ups who had recently canceled Netflix.
Starz, Hulu and Showtime saw the most modest increases in Sign-ups from recent Netflix churners.
Share of Netflix Switcher Sign-ups
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 Q1 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.
Brendan Brady is a Content Strategy Associate at Antenna, a measurement and analytics company providing insight into purchase behavior and subscription metrics across the new media landscape.