Kantar collected from a sample of new music and video subscription for three months. Some highlights from the Australia pilot are as follows:

1.4 million households added at least one new video subscription service in a span of three months, almost 14% of households.

­Netflix accounts for almost 22% of new subscriptions, although Amazon Prime Video is not far behind with 17%, with Disney+ at 12%. Stan and Stan Sport collectively account for 8.5% of new subscriptions in the three-month period, while Foxtel’s three brands Binge, Foxtel Now and Kayo amount to 12.2%.

­440,000 of new subscriptions were taken out by Gateway subscribers, being completely new to the category. Netflix is generally the gateway subscription, with friends/family an important source of information prior to sign-up.

­583,000 were Stacked subscribers, adding this new service to their existing subscriptions – over half of Binge subscriptions were stacked and almost half for Stan. The top marketing touchpoint for both service providers was the offer of a free trial.

The average number of VoD subscriptions held is 3.9, with only Netflix, Amazon Prime Video, Disney+ and Stan on par with the market or lower than average.

­18% of new subscribers cancelled an existing digital streaming subscription in order to subscribe to a new one. This rose to 25% and 21% among Binge and Britbox services respectively.

­Being able to ‘watch content when I want’ was the reason why streamers took out a subscription—cited by 30% of households. However, buying a smart TV to allow easy access to digital content was a trigger for one quarter of first-time streamers, while 11% took out a VoD subscription to replace their Cable TV service. This is apparent for those who took out a Britbox service.

­Consumers love Netflix and YouTube Premium, reflected in their high net promoter scores (NPS) of 49ppts and 44ppts respectively, against a market average of 30ppts. Drivers of satisfaction with Netflix are ease of use, amount of original content and value for money. For YouTube Premium, it is more about the ability to download content rather than value for money (YouTube Premium customers are nearly twice as likely to watch content while commuting or on the go compared to the average VoD subscriber).

Disney+ NPS is just above average at 31ppts, with content driving high satisfaction, whether it be the variety of TV series or classic films, the quality of the shows, or the number of new release films (two titles among the top 10 most recommended by friends and family are Disney+, namely Loki and Black Widow, while The Mandalorian makes it into the top 10 of content most enjoyed).

­In contrast, NPS ratings for Amazon Prime Video and Stan among new subscribers are below average at 23ppts and 20ppts respectively. Analysis of NPS diagnostics in other markets operating the entertainment on demand service often shows that NPS increases after around three months of having had the service, once consumers have learned how to navigate the content and this may well be the case with new Amazon customers, where there are potentially issues relating to the TV interface and ease of use (in finding TV content) with satisfaction on value for money also below average.

­For Stan customers, value for money and the amount or variety of content available drive satisfaction and customers like the ability to watch content on several different devices/screens. However, the quality of the shows and the quality of the recommendations of what to watch next appear to be driving some unhappiness and this is reflected in customers giving a below-average score on seeing themselves having the service for a long time. Incidentally, Britbox earned the highest score on this factor at 8.3/10.

­1.1 million households added a new music subscription service in three months over 10% of households.

­Spotify accounts for 26% of new subscriptions, although around half are using a free version and a further 7% are on a free trial. One in 5 have opted for an Amazon Music Unlimited (AMU) service, with over 60% paying for this service. Apple is behind with a share of 13.6%, although it manages to secure around one quarter of new subscribers on a yearly subscription, reducing the immediate risk of churn.

­Gateway subscribers were able to take 580,000 subscribers, landing in the category for the first time. Spotify is generally the gateway subscription, with 53% of its new subscriber base being completely new to the category. They offer a free trial and word of mouth via friends/family are the key marketing touchpoints prior to sign-up with Spotify.

­570,000 are Stacked subscribers. Heavy investment in advertising as well as online reviews are the key touchpoints for this group.

­9% of new subscribers cancelled an existing digital streaming subscription in order to switch—rising to 11% and 13% among YouTube and SoundCloud services respectively.

­Free trials encourage stacking, cited as a key trigger by 22% of those adding to their existing services, while acquisition of a wireless speaker is a trigger for 14% of first time streamers. Access to a wider variety of music is the top trigger for new Spotify subscribers.

­Value for money and the variety of podcasts available are relatively more important purchase drivers among those signing up with AMU, while for Spotify customers, it is more about the variety of artists and new releases available, streaming sound quality and, importantly, the music platform that their friends use.

Spotify customers love their service the most, reflected in a high net promoter score (NPS) of 38ppts, against a market average of 25ppts. Key drivers of satisfaction with Spotify are artists available, sound quality, and smartphone interface. NPS for AMU is lower than average at 20ppts. While delivering on the value for money that customers signed up for, advocacy is generally being dragged down by the smartphone interface, inability to follow or interact with friends, and a poor on-boarding experience relative to other platforms.

­Spotify and YouTube Music customers tend to show an interest in a wider variety of music genres compared to Apple Music and AMU customers, with rock especially lower among the latter two. For the more niche, high fidelity streaming providers such as Tidal or QoBuz, interest is relatively higher for genres such as classical, country or jazz/blues music.