Netflix's ad-supported tier attracted nearly 60% of new subscribers in the UK during Q3 2023, according to the Kantar Entertainment on Demand (EoD) study. This contributed to a total of 5.1 million new subscribers between July and September, as confirmed by Netflix's financial results. While this figure is ahead of forecasts, it represents the smallest subscriber growth in over a year.
Meanwhile, Disney+ experienced the highest growth in new subscribers during Q3, retaining the top spot for the second consecutive quarter. This surge in popularity is attributed to award wins for popular shows like "The Bear" and "Shogun," along with aggressive promotional campaigns that included partnerships with UK brands like Lloyd's Bank and Tesco, and a special offer of £1.99 for three months. In contrast, Netflix's absolute subscriber growth remained relatively flat compared to the previous quarter.
AppleTV+ secured third place in new subscriptions, driven by strong viewership for the third season of "Slow Horses." However, "The Boys" on Prime Video and "House of the Dragon" on NOW emerged as the most popular shows in Q3. Notably, one in three new subscribers to Sky-owned NOW signed up specifically for "House of the Dragon," the HBO-produced fantasy drama series.
The overall UK streaming market continues to grow, with 19.6 million households subscribing to at least one paid video streaming service, a modest increase of 77,000 compared to Q2 2024. At the free end of the market, Tubi launched its ad-supported streaming service in the UK on July 2nd. While this launch had no noticeable impact on subscription services, Kantar observed overlap with established rivals like Pluto TV and Freevee.
Both Pluto TV and Freevee experienced a decrease in active viewers since Tubi's arrival, indicating a fierce battle for screen time. Tubi viewers are also likely to use Pluto TV (48% overlap) and Freevee (35% overlap), highlighting the competitive nature of the free streaming market.