Kantar: SVOD Ad Tier Takeup Rises in the U.K.

New data on the VOD market in the U.K. from Kantar has found an increasing appetite for ad tiers on SVOD services, with the proportion of new subs choosing that option rising from 31 percent a year ago to 33 percent in Q1 this year.

In the period, Prime Video had the highest share of new paying subscribers (17 percent), with Apple TV+ in second place and Disney+ in third. Prime Video was ranked as the most-valued service by 27 percent of subs. Severance helped Apple TV+ score its 16 percent share of new subs, with 37 percent of them citing that returning show as their primary motivation for signing up. The platform grew its base by 4 percent on the previous quarter, with churn falling to 7 percent.

Of those choosing lower-priced ad tiers on SVOD, 27 percent do so primarily because of “value for money.” Kantar also discovered that cancellations are lower among those on ad tiers. In the period, 65 percent of new Netflix subs went for the ad plan, up from 42 percent last year. Netflix also has the lowest churn rate in the space, at about 2 percent.

In the AVOD landscape, adoption was flat in Q1, but Tubi has continued to scale its share.

Kantar also highlights strong gains at Mubi, a niche service for films that grew its base by 64 percent in the period.

Dominic Sunnebo, global insight director at Kantar’s Worldpanel division, said: “Ad-supported tiers are continuing to help platforms like Prime Video, Netflix and Disney+ stay ahead by offering a more affordable way to access TV and movies, and shows that British audiences have become more receptive to ads in general. Apple TV+ is gaining ground fast, thanks to standout content like Severance, while niche platforms like Mubi are proving there’s strong demand for unique and curated experiences. The competition in this streaming market remains fierce, and it’s clear that viewers want flexibility, value and content that speaks to them.”