Prime Video, Apple TV+ & Mubi Drive UK VoD Surge

In a dynamic start to 2025, Kantar, a marketing data and analytics company, reports significant shifts within the UK's video-on-demand (VoD) market. New insights from Kantar's Entertainment on Demand (EoD) service reveal that the streaming sector continues to grow more competitive, with Prime Video and Apple TV+ driving subscriber growth. Meanwhile, Mubi records a breakout quarter following a highly effective promotional campaign.

Kantar's EoD service, the industry benchmark for understanding TV viewing habits, offers comprehensive insights, including subscription sharing, consumer motivations and retention diagnostics. The quarter's data highlights key behavioural shifts among British households from January to March 2025, signalling a maturing and diversifying streaming landscape.

Ad-supported streaming gains momentum

Consumer uptake of ad-supported streaming options continues to rise. A third of new paying subscribers (33%) opted for ad-supported tiers in Q1 2025 – a slight increase from the previous quarter. For some platforms, the trend was more pronounced: 56% of Disney+ newcomers and a remarkable 83% of Prime Video's new subscribers selected ad-supported plans.

Dominic Sunnebo, Global Insight Director at Kantar's Worldpanel division, explains: "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.

"British audiences have become more receptive to ads in general."

Value for money remains a key consideration. Among ad-tier subscribers, 27% cited affordability as their top reason for subscribing – a greater proportion than among those choosing standard subscriptions. These lower-cost plans aid retention, with fewer planned cancellations reported compared to premium tiers.

Prime Video maintains lead amid post-holiday shifts

Historically, platforms see subscriber drops following the Christmas period. However, Prime Video broke the trend this year, leading all platforms with 17% of new paying subscribers in Q1. The platform's broad service offering – including entertainment, retail benefits and exclusive content – appears to resonate with users.

"Reacher" stood out as the most-watched title across all platforms in March, further supporting Prime Video's strong performance. Additionally, 27% of Prime Video subscribers identified the service as their most valued, suggesting that Amazon's integrated approach delivers strong returns.

Apple TV+ makes significant gains

Apple TV+ followed closely behind with a 16% share of new subscribers – its highest to date. The return of the acclaimed series Severance proved pivotal, with 37% of new users citing it as their main motivation for subscribing. Apple TV+ achieved the strongest subscriber growth of any major paid platform, up 5% from Q4 2024.

Apple TV+ saw churn rates fall below 10% for the first time since its launch, reaching just 7% in March. It marks a substantial improvement, reflecting growing loyalty among its audience.

Mubi's strategic promotion pays off

In a standout performance, Mubi rose to 7th place in new subscriber rankings—its best showing to date. A targeted promotional campaign, offering three months for US$1,33and highlighting the success of the Oscar-winning film The Substance, drew significant interest.

Mubi's unique positioning – focusing on independent and auteur cinema – continues to attract a discerning audience, particularly younger, high-income viewers aged 25–34. However, with these subscribers active on an average of six other platforms, long-term retention remains a challenge.

"Apple TV+ is gaining ground fast, thanks to standout content like Severance, while niche platforms like Mubi are proving strong demand for unique and curated experiences," added Dominic. "The competition in this streaming market remains fierce and it's clear that viewers want flexibility, value and content that speaks to them."

Broader market trends

Other key insights from Kantar's Q1 2025 report include:

• Netflix saw 65% of new subscribers choose its ad-supported tier, up significantly from 42% a year prior while maintaining an industry-low churn rate of around 2% monthly.
• Despite consistent household adoption, free ad-supported services such as Pluto TV and Tubi remained flat in growth. However, Tubi has continued to expand its new subscriber base since launching in mid-2024.
• Overall, 19.8 million UK households now subscribe to at least one paid streaming service, an increase of 142,000 from Q4 2024.

With consumer preferences continuing to evolve and competition intensifying, the coming quarters will prove critical for platforms seeking to capture – and retain – increasingly selective viewers.

Explore the latest edition of Mobile Magazine and be part of the conversation at our global conference series, Tech & AI LIVE and Cloud & 5G LIVE. Discover all our upcoming events and secure your tickets today.

Sign up to receive the Mobile Magazine weekly newsletter.

Mobile Magazine is a BizClik brand