Traditional paid TV services are seeing further market share penetration from streaming services, newspapers are fighting back with new subscription models and audio streaming platforms are seeing growth stabilising, according to new data from advertising platform, Cardlytics.
Cardlytics’ new data – based on the purchasing habits of over 23 million UK bank accounts, as well as a new Opinium poll of 2,000 adults – highlights the shifts in consumption of media services, with consistent revenue growth in TV, plateauing use of audio streaming services, and fluctuations in market share and engagement for traditional broadcast TV and newspapers.
Paid TV subscriptions see decline while streaming services grow
The data reveals traditional broadcast TV has seen a decline in the number of customer transactions for the last two years, with transaction volumes down 5% year-on-year from 2023, reflecting a decrease in engagement as more consumers shift towards streaming services. Broadcast revenue dropped in 2023 but saw a modest recovery in 2024, rising above 2022 levels. However, this rise in revenue could be attributed to a spike in average transaction value (ATV) in 2024, as a result of price increases.
Under three in 10 (28%) of UK adults believe their paid TV subscriptions are good value for money, with one in five (19%) claiming they feel they are bad value for money. A further two in five (22%) households plan to cancel their paid TV subscription within the next 12 months, with a third (34%) of those citing high cost as the reason why.
In contrast, TV streaming services have seen consistent growth across all key metrics, with total spend (+7%), transaction volumes (+4%) and average spend (+3%, to £10.13 per transaction) increasing year-on-year. With more consumers seeking affordable and personalised media options, streaming services continue to outperform traditional providers.
While streaming services continue to see growth, the research suggests they aren’t immune to customer churn. In the past 12 months, nearly one in three (28%) UK adults have cancelled a streaming service subscription, including 16% who’ve cancelled one and 12% who’ve cancelled more than one.
Newspapers adjust models to fend off digital competition
The proliferation of digital media has raised concerns about the future of print and local newspapers. However, recent data shows that many are adapting, using innovative strategies to stay relevant in an increasingly digital age. Despite the number of membership purchases declining by over 2% year-on-year, total revenue surged nearly 4%, in that same time period. This growth has been fuelled by a 6% increase in average transaction value (ATV), rising from £28.38 to £30.14, as loyal readers appear to demonstrate a willingness to pay more for high-quality journalism.
By leveraging data-driven marketing techniques, newspapers have been able to convert casual readers into loyal subscribers and sell premium content to existing customers. In addition to increasing ATV, these efforts are helping the industry compete more effectively with digital disruptors, as traditional publishers shift towards curated, high-value content and premium publications. This approach opens new opportunities to rebuild readership and foster deeper customer loyalty in a rapidly changing media landscape.
Audio streamers see growth stabilise
After several years of growth, the audio streaming industry is now facing a plateau in revenue and users. The data shows that after 20% revenue growth from 2022 to 2023 and 13% jump in transactions, revenue rose by just 1% and users by less than 1% in the last 12 months. This comes alongside a similar stabilisation in costs to the user, with the average transaction value for each customer rising by only 2p from 2023, compared to a 41p rise the previous year.
This has left audio streaming services forced to look elsewhere for new revenue streams. This could come in the form of introducing new ad-tier models or creating additional premium subscription tiers, for example. However, offering personalised offers and rewards could represent a lucrative alternative in order to increase customer acquisition.
Despite inflation easing, customers are still feeling a drag and are continuing to look for ways to save money. Discretionary spending is usually the first on the chopping board when it comes to reducing outgoings – and this has been acutely felt by subscription services across TV, news media, and audio. All the while, businesses are having to contend with consumers having more choice than ever before, causing a dilemma for marketers – how do we keep our customers coming back to us?
Our data has shown that media companies will need to focus on innovation, personalised offers and rewards to retain their customer base amid increasing competition from digital disruptors. We’ve seen first-hand the impact price is having on customer churn, so now is the time for subscription businesses to deliver data-led cashback and rewards to customers to foster loyalty, while driving incremental customer acquisition and spending. As customer expectations evolve in an era of digital transformation, the brands that win will be the ones that deliver value, personalization, and innovation.
– Sharina Mutreja, Partnerships Director, Cardlytics
