Kantar’s Q3 2024 Insights into VoD Trends

Kantar’s Q3 2024 Entertainment on Demand (EoD) report reveals a notable surge in sports viewership on video streaming platforms, driven by events like the Olympics, alongside evolving content strategies for platforms aiming to retain a diverse subscriber base. As live sports attract new audiences, particularly women and older viewers, the report underscores the potential for streaming services to compete with traditional broadcasters through high-quality delivery and interactive features.

This article explores key takeaways from the report, focusing on shifts in streaming subscriptions, popular content, and the influence of sports and ad-supported models on audience engagement.

Sports Viewership Soars: Diverse Audiences Tune In

Kantar’s data for July to September 2024 reveals that 50% of households watched sports in Q3, up from 44% in Q2, with new sports viewers predominantly women (56%) and those aged 55+ (48%). This spike underscores a broader trend in which live sports content is helping streaming platforms expand their reach and cater to more diverse demographics.

Pharma media professionals may recognize this trend as a signal of shifting viewer demographics. Sports content is no longer exclusively male-dominated, opening up new advertising opportunities in health-related categories. Targeted campaigns that engage both female audiences and older demographics, particularly on ad-supported streaming, could present untapped value for health brands.

Ad-Supported Streaming Gains Momentum

The report highlights growth in ad-supported streaming (AVoD) models, with AVoD subscriptions increasing by 8% quarter-over-quarter and Free Ad-Supported Streaming TV (FAST) users up by 2%. Notably, among new streaming subscribers, 39% opted for subscription-based VoD (SVoD), 29% for AVoD, 24% for FAST, and 8% for Virtual Multichannel Video Programming Distributor (vMVPD) services.

For pharma brands, this rise in ad-supported viewing could mean more affordable, targeted media buys in environments where viewers are receptive to ads. AVoD platforms are emerging as essential channels to reach value-conscious audiences, especially as ad-free subscription models face challenges in keeping subscribers engaged long-term.

Content That Drives Engagement: House of the Dragon and Local Successes

House of the Dragon, HBO’s popular fantasy drama, dominated as the most enjoyed title in Q3 2024, driving significant subscriber engagement. This content has been instrumental in the expansion of platforms like Max, which achieved rapid adoption in France, becoming the second-most-adopted streaming service behind Prime Video. In the U.S. and other regions, high-quality, high-stakes dramas continue to be a cornerstone of subscriber retention.

Additionally, the report highlights Germany’s VoD market, where platforms like Joyn, WOW, and RTL+ thrive by focusing on local, highly tailored content. Germany has seen an 8% increase in VoD market penetration over two years, led by platforms that integrate culturally relevant programming. These insights illustrate that content specifically crafted for local audiences plays a crucial role in capturing and retaining subscribers.

Emphasizing culturally relevant content can extend to healthcare campaigns, allowing for region-specific messaging that resonates within local communities. For instance, health campaigns tailored to align with popular local content can boost engagement and establish trust with viewers.

Ad Strategies: Bundles, Free Trials, and the Influence on Subscriber Loyalty

Kantar’s report also shows that 24% of all subscriptions globally were acquired through bundles or free trials, with Disney+ and Apple TV+ leading this trend. Disney+ capitalized on bundled offers with major brands like Lloyds Bank, while Apple TV+ leveraged ecosystem integration with free trials bundled with new Apple hardware.

While bundles are effective in attracting subscribers, Kantar points to higher churn rates associated with platforms relying on these strategies. Apple TV+’s average importance rating dropped to 3.0 among subscribers who cancelled, suggesting that bundled subscribers may not view the platform as essential once promotional periods end.

For producers it underscores the need to focus on content relevance and engagement strategies beyond acquisition. As bundling grows within media, strategies to keep viewers engaged after the initial trial period—through exclusive content or specialized resources—can reduce churn and enhance long-term engagement. For those planner media, it is worthwhile understanding the stability of users that these platforms have, particularly those that rely on bundles for acquisition.

Live Sports Reshaping VoD Engagement and Retention

Sports content, a historically traditional broadcast staple, is increasingly vital in retaining streaming subscribers. The report found that sports viewership was highest in France (57%) and lowest in the U.K. (41%), with the Olympics alone driving one in four new subscribers to discovery+ in Q3. Additionally, sports viewers showed interest in related categories, with over 20% regularly listening to sports-related podcasts.

This high engagement level makes sports fans a valuable audience for ad-supported services. Streaming platforms are meeting this demand by enhancing interactive features, such as real-time statistics and immersive interfaces, to enrich the viewing experience.

Engaging sports viewers through interactive and immersive ad formats, particularly during live-streamed events, could enhance recall and improve targeting for health products. In a space where viewers are highly engaged, personalized or interactive ads could create memorable connections with audiences.

solli’s Final Thoughts

In conclusion, Kantar’s Q3 2024 report highlights the transformative power of live sports, ad-supported models, and culturally tailored content in reshaping the streaming landscape. As platforms compete for diverse audiences, strategies that prioritize high-quality engagement, personalized advertising, and localized programming will be critical in driving retention and long-term growth. These priorities should guide those planning ad campaigns within this evolving streaming ecosystem.

To access the full report click here.