LONDON: Video on demand (VOD) subscriptions in the UK were worth just £28m in 2009, but are now expected to grow to an annual value of more than £1bn by 2019, a new report has forecast.
According to market research firm Mintel, demand for video streaming services from Netflix and other providers has been growing rapidly and it estimates the UK market grew 56% between 2013 and 2014 to reach a value of £437m.
Despite facing increased competition from pay-TV services that continue to reach more homes, Mintel estimates video streaming subscriptions will total £1.17bn in four years' time, giving the sector 38% of the total UK video market.
Much of this growth is being driven by younger users, with 91% of consumers aged 16 to 24 accessing a video streaming service in the past 12 months.
But the channel appeals across the generations and the report found that more than two-thirds (69%) of all British consumers have streamed online videos over the past year, with a third (32%) of them paying for the service.
Paul Davies, senior leisure and technology analyst at Mintel, said that part of the appeal is that streaming services allow people to access a huge mix of content.
He also predicted that "as more consumers acquire connected devices such as smart TVs, which allow them to stream films and TV programmes directly, more people will pick digital sources over physical formats such as DVDs and Blu-rays".
The Mintel research also found that exactly half of UK consumers prefer to explore content themselves rather than receive recommendations from providers. Meanwhile, nearly a third (31%) said they would like to see content recommendations from their friends appear on sites.
Also of note for providers, Mintel discovered that a third (33%) of online video subscribers – and 41% of online music subscribers – would be open to a subscription package that included a bundle of different media services.
According to market research firm Mintel, demand for video streaming services from Netflix and other providers has been growing rapidly and it estimates the UK market grew 56% between 2013 and 2014 to reach a value of £437m.
Despite facing increased competition from pay-TV services that continue to reach more homes, Mintel estimates video streaming subscriptions will total £1.17bn in four years' time, giving the sector 38% of the total UK video market.
Much of this growth is being driven by younger users, with 91% of consumers aged 16 to 24 accessing a video streaming service in the past 12 months.
But the channel appeals across the generations and the report found that more than two-thirds (69%) of all British consumers have streamed online videos over the past year, with a third (32%) of them paying for the service.
Paul Davies, senior leisure and technology analyst at Mintel, said that part of the appeal is that streaming services allow people to access a huge mix of content.
He also predicted that "as more consumers acquire connected devices such as smart TVs, which allow them to stream films and TV programmes directly, more people will pick digital sources over physical formats such as DVDs and Blu-rays".
The Mintel research also found that exactly half of UK consumers prefer to explore content themselves rather than receive recommendations from providers. Meanwhile, nearly a third (31%) said they would like to see content recommendations from their friends appear on sites.
Also of note for providers, Mintel discovered that a third (33%) of online video subscribers – and 41% of online music subscribers – would be open to a subscription package that included a bundle of different media services.
Data sourced from Mintel; additional content Warc staff
