There are signs that consumers may be cutting back on their music streaming subscriptions in some key markets, and Kantar (the leading marketing data and analytics company) believes it could reflect cost-of-living pressures driven by inflation. Over a million music subscriptions were cancelled in the last quarter in GB, with 37% of consumers giving ‘wanting to save money’ as the reason for cancellation. This figure for ‘cancelled in order to save money’ is up 4% over the same period last year. In GB, the percentage of under-35s having access to a music subscription has dropped from 57% to 53.5% year-on-year.
“With inflation rising to 9% in the United Kingdom and further rises in the cost of living expected, the rising cancellation rates of music subscriptions is evidence that British households are starting to prioritise the spending of their disposable income,” Kantar offers as a reason.
Cancellation rates for subscription music streaming services in Q1 2022 were 3% in GB, (where total penetration for music streaming subscription services was 39.5% of adults during the period – so that is individuals and not households). The cancellation rate was 4.6% in the U.S. (where penetration is 48.8% of the population) and 5.1% in Germany (where penetration is 36.6%). Across these territories, three of the top five reasons for cancelling linked back to saving money, Kantar reports.
The data comes from the Kantar Entertainment On-Demand service, which expands Kantar’s data services into the video and music subscription market. Entertainment On-Demand is a subscription service itself, providing both quarterly installed base and new subscription market share data alongside deep analysis on purchase motivations, including named content, customer experience, and diagnostics on ‘at-risk subscribers’. “The data will help major players, market entrants and investors understand the ‘why’ behind the ‘buy’ decisions that video and music subscribers are making,” Kantar says. Kantar is well-known for its TV viewing insights, advertising spend data, and mobile phone purchasing and usage trends, among other things.