Mobile churn and buying behaviour of Australian consumers\ Netflix – Looking towards 2025\ UK mobile market in Q1 2020

 

 



 

 

 

Welcome to the Venture Insights newsletter!
In this week’s edition, we look at: 

 

  • Mobile churn and buying behaviour of Australian consumers
  • Netflix – Looking towards 2025
  • UK mobile market in Q1 2020

 

 

 

CHART OF THE WEEK

 

 

Percentage of survey respondents rating a factor between 4 and 5 on a scale of 1 (not important) – 5 (very important), when deciding their next mobile service purchase



 

 

Source: Venture Insights Consumer Survey March 2020, n=1,016 

 

 

 

Mobile churn and buying behaviour of Australian consumers

 

 

Survey question: Which mobile phone provider are you thinking about moving to (by current provider)?  



 

 

Source: Venture Insights Consumer Survey March 2020, n=384

 

 

Our latest consumer telco survey shows that price and network performance/speed are the key purchasing factors for mobile services, both rated as important or very important by 91% of the respondents when deciding their next mobile service purchase. Of the respondents looking to churn, 44% chose price as the key factor for the switch, and data allowance was a distant second picked by 18% of the respondents. Data on intention to churn shows that the market share of MVNOs would increase by 9% if every respondent who indicated an intention to churn in fact did so. There is an appetite for 5G, but only 20% of the respondents were willing to pay more for 5G mobile services or handsets. A majority (57%) change their mobile phones every 2-3 years, and 38% of respondents said they would consider purchasing a recycled or refurbished mobile phone at a lower price, suggesting handset price is also a factor for a segment of consumers. Click on to read our report for more details.

Click to read report

 

 

Netflix – Looking towards 2025

 

 

 Netflix US quarter-by-quarter paid subscriber growth



 

 

Source: Enders Analysis, company reports

 

 

Netflix had an excellent first quarter in 2020 with the tail end encompassing lockdown and likely eliminating churn, as usage exploded. Looking forward, there are lessons to be learnt from Netflix’s performance in the US market, which is maturing and stabilising: we model strategy around pricing, content spend and subscription-tier mix. However, differences in other markets remain stark—such as the varying propensities to absorb price rises, and the attachment to locally-produced content. For more details, click to read a report from our UK research partner, Enders Analysis.

Click to read report

 

 

UK mobile market in Q1 2020

 

 

Reported mobile service revenue growth



 

 

Source: Enders Analysis, company reports

 

 

The slow recovery in UK mobile continued this quarter with a 1ppt improvement in service revenue trends. In spite of operator guidance to the negative, the sector is likely to remain relatively resilient in the face of COVID-19 in the short term, with its various impacts affecting operators differently depending on their business mix. The outlook is relatively robust with the impact of some regulatory initiatives muted by lockdown measures and the annualization of some financial drags from the middle of next quarter. For more details, click to read a report from our UK research partner, Enders Analysis.
 

Click to read report