Paid Streaming Services: Audio & Video - Canada - 2023

OVERVIEW
What you need to know
Key issues covered in this Report
EXECUTIVE SUMMARY
Top takeaways
Consumer trends
Most consumers are subscribed to some form of streaming service
Figure 1: Paid streaming service subscriptions, 2023
Consumers typically only have the financial bandwidth for two paid subscriptions
Figure 2: Monthly streaming subscription spend, 2023
First-to-market brands have the highest usage and subscription base, but innovation keeps them on top
Competitive strategies
Tight wallets and tough financials are affecting even the largest streaming video giants
Figure 3: Netflix Twitter/X post, October 2022
At the top of the audio streaming game, Spotify continues to innovate
Figure 4: Spotify Stream On Instagram post, March 2023
Canadian telecoms take note of Verizon’s streaming savings bundle
Figure 5: Verizon TikTok post, March 2023
Market Predictions
Elevated prices across most sectors continue to squeeze consumers
Household savings rise slightly after a Q1 dip
Hard financial times put the squeeze on streaming services
Figure 6: Category outlook for paid streaming services, 2023-28
Opportunities
Streaming brands should aim to deliver savings in times of economic hardship
MARKET FACTORS
Acceleration in August CPI was driven by energy prices and housing
Elevated prices across most sectors continue to squeeze consumers
Figure 7: Canadian Consumer Price Index, January 2020-August 2023
Household savings rise slightly after a Q1 dip
Figure 8: Canadian household savings rate, Q1 2019-Q2 2023
Canada’s aging population will likely put pressure on younger Canadians
Figure 9: Canadian population age projections, yearly, 2000-40
Diversity among future generations is projected to increase
Figure 10: Proportion of visible minority in Canada, 1981-2036
The Hollywood writer’s strike will affect the rollout of new paid streaming video content
COMPETITIVE STRATEGIES
Tight wallets and tough financials are affecting even the largest streaming video giants
Figure 11: Netflix Twitter/X post, October 2022
Figure 12: Willow  Instagram post, January 2023
At the top of the audio streaming game, Spotify continues to innovate
Figure 13: Stream On Spotify Instagram post, March 2023
The social media streaming landscape is becoming a crowded place
Figure 14: Kick Instagram  post, June 2023
Canadian telecoms take note of Verizon’s streaming savings bundle
Figure 15: Verizon TikTok post, March 2023
FAST FACTS: PAID STREAMING SERVICES 
VIDEO STREAMING SUBSCRIPTIONS AND BRAND USAGE
Three in four Canadians are subscribed to a video streaming service
Figure 16: Paid streaming subscriptions, 2023
Millennials are a target audience or paid streaming video subscriptions
Figure 17: Paid video streaming subscription, by generation, 2023
Include diverse programming for wider demographic appeal
Figure 18: Paid video streaming subscription, by race, 2023
Streaming brands should target parents via kids’ content marketing
Figure 19: Paid video streaming subscription, by parental status, 2023
Figure 20: Disney+ Instagram post, March 2023
Video streaming subscribers are more likely to be subscribed to non-streaming content
Figure 21: The majority of the content I consume is from a streaming service (% agree), by subscribers to streaming services, 2023
Netflix should focus more on retention, while other platforms focus on growth
Figure 22: Video streaming brands used in the past three months, 2023
Figure 23: Star Trek: Picard | Final Season Sneak Peek | Paramount+, September 2022
Streaming services follow generational trends
Figure 24: Video streaming brands used in the past three months, by generation, 2023
A strong kids’ catalogue is key for engaging parents
Figure 25: Netflix and Disney+ usage in the past three months, by parental status, 2023
Figure 26: Paramount+ Twitter post, October 2022
Nearly half of consumers only subscribe to one streaming service at a time
Figure 27: Subscription to a single video streaming service at a time, 2023
Younger men re likely to be sole subscribers
Figure 28: Subscription to a single video streaming service at a time, by age and gender, 2023
PAID AUDIO STREAMING SUBSCRIPTIONS AND BRAND USAGE
Just over one-third of Canadians have an audio streaming service subscription
Figure 29: Paid audio streaming subscription, 2023
Younger consumers are more likely to subscribe to paid audio streaming services
Figure 30: Paid audio streaming subscription, by age, 2023
Income and age certainly intersect for paid audio streaming subscriptions
Figure 31: Paid audio streaming subscription, by age and income, 2023
Streaming audio subscriptions are significantly higher among Black Canadians
Figure 32: Paid audio streaming subscription, Black consumers by age, 2023
Spotify Premium is the top paid audio streaming brand in Canada
Figure 33: Paid audio streaming brands used during the past three months, 2023
Although all consumers prefer Spotify, it is particularly popular among younger demographics
Figure 34: Paid audio streaming brands used during the past three months, 2023
Figure 35: Spotify Blend TikTok Post, February 2023
Audio streaming subscribers are highly likely to be sole subscribers
Figure 36: Only subscribe to one audio streaming service at a time, 2023
Figure 37: Audible Facebook promotion, September 2023
PAID SOCIAL STREAMING SUBSCRIPTIONS AND BRAND USAGE
The vast majority of Canadians do not subscribe to social streaming services
Figure 38: Social streaming subscription, 2023
Brands are most likely to reach younger men when advertising with content creators
Figure 39: Social streaming subscription, by age and gender, 2023
Reach out to diverse audiences through creators
Figure 40: Social streaming subscription, by race, 2023
Figure 41: 
YouTube pulls ahead for both streaming and content creator subscriptions
Figure 42: Social streaming brands and creator subscriptions, 2023
Consumers are interested in following their content creators across platforms
Figure 43: Social streaming brands and creator subscription activities, 2023
SUBSCRIPTION HABITS AND SPEND
Consumers typically aren’t looking to spend more than $40 on streaming services
Figure 44: Monthly streaming subscription spend, 2023
Consumers aged 35-54 spend the most on subscription services
Figure 45: Monthly streaming subscription spend, by age, 2023
Parents are significantly higher spenders than non-parents
Figure 46: Monthly streaming subscription spend, by age, 2023
A free trial remains the best way to attract non-subscribers
Figure 47: Streaming motivations, 2023
Figure 48: Free trial behaviours, 2023
Streaming bundles are a good way for brands to increase spend and retention
Figure 49: Streaming attitudes and habits (% agree), 2023
Figure 50: Gave a streaming service log in to a friend, by age, 2023
CHURN AND RETENTION
Aside from free trial churn, financials are impacting retention
Figure 51: Streaming account cancellation behaviours, 2023
Younger consumers more likely to have cancelled 
Figure 52: Participation in streaming service churn behaviours in the past year, by age, 2023
Figure 53: Participation in streaming service churn behaviours in the past year, by race, 2023
For potential cancellers, price is also top-of-mind
Figure 54: Potential reasons for cancelling, 2023
Content is king for streaming brands and influencers hoping to hold onto subscribers
Figure 55: Attitudes towards video and social streaming (% agree), 2023
Platforms can use recommended content algorithms to keep consumers interested
Figure 56: “I use randomized content functions on my streaming services when I don't know what to listen to or watch” (% agree), by age, 2023
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Mintel Trend Drivers
Abbreviations and terms
Abbreviations
Terms