Sports Rights, Ad Tiers Transforming VoD Market

Kantar Report Highlights Shifts in Global Streaming Trends

Marketing data and analytics firm Kantar has released its Q4 2024 Entertainment on Demand (EoD) report, revealing key trends in the global streaming market. The study, conducted by Kantar’s Worldpanel division, highlights an increasing preference for ad-supported streaming, significant growth for Apple TV+, a surge in investment in sports content, and Netflix’s continued dominance in engaging audiences.

Key Findings (October – December 2024):

• Most Enjoyed Shows: "Black Doves" topped the list, followed by "The Day of the Jackal," "Lord of the Rings: The Rings of Power," "Yellowstone," and "Outer Banks."

• Fastest-Growing VoD Platforms: Apple TV+ and Paramount+ led year-on-year growth.

• New Subscriber Share: Prime Video captured the highest share of new paying subscribers, followed by Paramount+ and Netflix.

• Ad-Supported Growth: Paid ad-supported subscriptions increased by 3% quarter-on-quarter.

• Subscription Preferences: 38% of new VoD users chose premium models, while 35% opted for paid ad-supported tiers. Free ad-supported television (FAST) accounted for 20%, and virtual multichannel video programming distributors (vMVPDs) held a 7% market share.

• Netflix Ad-Tier Adoption: Two-thirds (66%) of Netflix’s new subscribers chose the ad-supported plan.

  

Netflix Expands with WWE and NFL

Netflix entered 2024 with major strategic moves, including discontinuing its cheapest ad-free plan and securing exclusive streaming rights for WWE, set to launch in 2025. While the company is expanding into live sports, co-CEO Ted Sarandos emphasized the entertainment aspect of sports rather than pure sports coverage.

Netflix’s decision to stream NFL Christmas Day games proved to be a game-changer, with 18% of its new subscriptions in Q4 2024 driven by sports content. As a result, Netflix ranked third in new subscriber acquisitions globally, showing growth across most markets except Australia. Subscriber satisfaction rebounded to previous highs, earning Netflix an impressive Net Promoter Score (NPS) of +44—the highest since Q1 2022.

NFL’s Global Influence Fuels Sports Streaming Boom

The evolution of sports streaming continues to transform the industry. YouTube TV’s acquisition of NFL Sunday games for the 2023/2024 season resulted in a staggering 48% increase in subscribers from Q3 2023 to Q4 2024, highlighting the growing demand for premium sports content.

American football viewership surged, with 42% of sports-watching households tuning in during Q4 2024—a 6% increase from the previous quarter. International NFL games in Germany and London have fueled global interest, with upcoming events scheduled in Dublin (2025) and Melbourne (2026). As streaming giants vie for untapped international audiences, sports content is emerging as a major driver of subscriber growth.

Disney is also making strategic moves under CEO Bob Iger, merging Hulu + Live TV with Fubo after Venu Sports’ collapse. Additionally, Disney is set to launch a direct-to-consumer ESPN service later this year. By bundling ESPN with other streaming offerings, Disney aims to maximize its reach and strengthen audience engagement.

Meanwhile, Comcast Xfinity introduced a streamlined “skinny” bundle focused solely on live sports and news to cater to consumers prioritizing curated content. This decision aligns with data showing that 63% of Xfinity customers watched sports in Q4 2024.

Ad-Supported Streaming Gains Popularity

Paid ad-supported streaming saw significant traction, with 35% of new VoD subscribers choosing ad-tier plans—an increase from 21% a year prior. Initially met with skepticism, these models now exhibit improved retention rates due to their cost-effectiveness. Notably, 43% of ad-tier users expressed satisfaction with the value offered, surpassing satisfaction levels for ad-free plans. Meanwhile, resistance to ads has declined, with only 23% of VoD users opposing advertisements in their streaming experience.

Apple TV+ Sees Breakout Year

Since its 2019 launch, Apple TV+ has steadily expanded its global footprint, but 2024 marked a turning point. The platform is now the primary VoD service for 28% of its subscribers—up three percentage points year-over-year. Its success is attributed to enhanced content quality, compelling local and global programming, and strategic bundling offers.

Apple TV+ ranked fourth in new subscriber acquisitions, with 49% of new users citing bundled promotions as their primary reason for subscribing. The service achieved 14% year-over-year growth, with an impressive 21% increase in Germany alone.

The Future of Streaming: Innovation and Competition

Reflecting on these trends, Andrew Skerratt, Global Insight Director at Kantar’s Worldpanel, stated: “The NFL is redefining streaming, with a 48% surge in subscribers proving that fans worldwide crave premium, real-time sports content.”

Streaming giants such as Prime Video, Netflix, and Apple TV+ continue to shape the industry by leveraging innovative business models, investing in sports content, and expanding their ad-supported tiers. The competition is no longer just about having great content—it’s about offering flexible, engaging, and cost-effective viewing experiences in an ever-evolving digital landscape.