Australians are increasingly frustrated with streaming platforms hiking prices and failing to deliver quality content, according to analysis that spells trouble for Netflix and Disney.

Figures published this week by Kantar found Australians have become more dissatisfied with streamers in early 2024, with value for money ratings declining 7 percentage points to 21 per cent over the past year as each major service has passed on price hikes.

Netflix, Disney+ and Amazon Video are bearing the brunt of this dissatisfaction, according to the report.

The Foxtel-owned Kayo, meanwhile, has doubled its share of new subscriptions with its sports content.

The findings demonstrate anger among Australians about higher prices for on-demand streaming and a lack of quality content coming out due to the Hollywood writer’s strike.

Kantar’s consumer insights director Andrew Northedge said the cost of living also had a role, with saving money being the top reason for cancelling plans at 42 per cent of churn.

“Other value-related cancellation reasons have seen a large increase in [the first three months of 2024], such as not being willing to pay a higher price and not wanting to pay after a free trial,” he said.

“This has correlated with an increasing number of streamers cancelling their service, with most services experiencing a bump in churn rates in the first quarter of 2024.”

Major streaming platforms have squeezed consumers in the past year, with Netflix dumping its cheapest ad-free plan and Disney+ making similar moves as the industry shifts towards more expensive premium deals and cheaper ones that include advertisements.

Kantar said streaming plans with ads included had boomed in the past year, rising to 16.6 per cent from just 9.2 per cent in early 2023, suggesting cheap deals are popular.

Local content king

However, Kantar’s analysis shows some bright spots with audiences, including locally produced content and online sports streaming, both of which are driving viewership.

Netflix’s Australian-produced series Boy Swallows Universe is a prominent example.

The adaption of Trent Dalton’s semi-biographical book proved a big hit with Australians. It held the top spot for most viewed and enjoyed title over the first quarter of 2024 and was a key driver of satisfaction among audiences, Northedge said.

“Netflix’s new local market focus has helped to shrink churn quarter-on-quarter to just 6 per cent, far lower than any other rival,” he said.

“Net [subscription] adds grew and more customers watched via the ad-supported platform, which now contributes 19 per cent of all subscribers and 24 per cent of new [subscription] adds.”

Sport on the rise

The other recent winner in the streaming industry has been sports content, which helped Foxtel-owned platform Kayo drive increased subscriptions in the first quarter of 2024.

Kayo posted its highest share of new subscribers industry-wide at 10 per cent in the three month-period, largely driven by the AFL (24 per cent) and NRL (18 per cent) seasons.

Motorsport was also a key factor, Kantar said, particularly during the F1 Grand Prix staged in Melbourne during March. It drew record crowds in person and intense interest online.

Northedge said streamers would need to increasingly diversify their offers to customers to justify higher prices, including investing in more local content and sports-related viewing.

“Areas that contribute to satisfaction, such as the quality of TV shows and amount of original content, have fallen back, particularly for global services like Disney+ and Netflix,” he said, referencing the Hollywood writer’s strike last year.