The latest data from Kantar reveals exciting news for Amazon Prime Video as it has emerged as the leader for new paid subscriptions within the UK streaming market for Q4 2024. Amidst increasing competition and changing consumer behaviors, Amazon Prime Video has successfully leveraged seasonal shopping trends to boost its subscriber count, showcasing significant growth over the past year.
Released on January 31, 2025, Kantar's Entertainment on Demand (EoD) data highlights the continuing evolution of video-on-demand (VoD) consumption. A notable finding is the rising preference for ad-supported streaming options, indicating how user choices are shifting. According to Kantar, as of Q4 2024, one in three (31%) new paid subscribers opted for ad-supported tiers, up dramatically from just one in ten the previous year.
Competing platforms, particularly Netflix, have also made notable strides. Netflix accounted for the second largest share of new subscribers with its ad tier, pulling 69% of its new users from the ad-supported subscription option. Nonetheless, Amazon Prime Video pulled ahead as the most favored, gathering significant market share as households looked to optimize their entertainment spending during the peak holiday shopping period.
Amazon Prime Video’s market share surged to 21.1% from 15.4% by the end of 2024, positioning it firmly above Apple TV+ and Disney+, which held 15% and 10.3% respectively. This surge demonstrates how the holiday season and strategic marketing can maximize subscriber growth. The primary driver of these new subscriptions was the motivation behind Black Friday and Christmas shopping, where consumers often sign up for Prime membership to enjoy benefits like faster free shipping and access to exclusive video content.
Interestingly, Prime Video experienced unprecedented subscriber enthusiasm among the demographic aged 35 to 44. This age group reported the highest engagement levels during the quarter, showcasing how content and service integration is connecting with viewers effectively. Alongside increased usage among these demographics, Prime Video is demonstrating the potential for long-lived subscription patterns with planned cancellations standing at just 4.2% heading to Q1 2025. This is down from higher cancellation figures seen previously, indicating improved customer retention and satisfaction rates.
Given these developments, consumer sentiment has shifted positively, with many users reportedly feeling they are gaining enhanced value from their Prime subscriptions. Dominic Sunnebo, Global Insight Director at Kantar, noted how these shifts could indicate reduced consumer pressure from the cost-of-living crisis, reflected by increased household budget allocations to entertainment segments.
Prime Video’s added value is not just from casual viewing; it has expanded its offerings to include exclusive live rights to Premier League and Champions League football, catering to sports enthusiasts who are also Prime members. This strategic move has fortified Amazon’s position among competing platforms, tapping deeply rooted interests within sports viewership.
Another prominent competitor, Netflix, has achieved excellent results as well, enjoying significant subscriber growth with its own compelling content, particularly its popular show Black Doves. At the same time, Netflix has also conquered the ad-supported tier territory, but with Amazon currently leading the charge for new paid subscriptions, it appears to be keeping its rivals on notice.
Apple TV+ has also captured the attention of viewers, securing second place after Prime Video. Despite being behind, Apple has made notable gains, especially by emphasizing locally produced British content, which resonates with UK audiences. It has been reported by Kantar’s data analysis team, where 42% of its most enjoyed titles are British. This localized approach has enhanced its standing among UK subscribers, marking Apple TV+ as one to watch moving forward.
Interestingly, the overall video streaming sector seems poised for continued growth. Despite varying data across platforms, the theme remains consistent: consumers are showing increasing preference to invest their resources where they feel they gain the most value. The benefits from competitive pricing, quality content, and service engagement reflect changing patterns of streaming across the board.
To encapsulate, Kantar’s data suggests Amazon Prime Video has leveraged market trends effectively, outperforming its nearest competitors, showcasing the relevance of quality content, seasonal usage drives, and advertised relationships. With fewer planned cancellations post-holidays, it appears viewers are warming to both the service and its offerings, setting the stage for another fruitful year for this cornerstone of Amazon’s broader subscription model.
By maintaining strategic exclusive content and integrating valuable services, it's clear why many British households are choosing Prime Video as their preferred streaming service heading out of 2024. This serves not only to amplify Amazon's market position but could also signal long-term sustainability for viewing habits within the current cost-conscious environment.