Some 43% of SVOD users have rejected linear TV services (referred to as ‘normal’ TV in the study), the research from subscription commerce specialist Zuora and UK-based research house YouGov.
In total, 27% of the adult British population (13.9 million) now subscribes to an SVOD service, with six million (12% of the adult population) no longer interested in linear offering as a result.
Taken in isolation, 58% of the 25-34 SVOD subscriber demographic has given up on ‘normal TV’, while around 44% of 16-24s said they were SVOD subscribers, compared with 26% for cable and satellite services. The older 45-54 demo showed contrasting behaviour, with 23% taking SVOD services and 49% cable and satellite platforms.
Zuora’s data showed Netflix is by far the biggest SVOD platform in the UK, with a staggering 12.4 million subs (24% of the adult population). Sky Go was second with 7.2 million, Amazon third with 6.7 million and Now TV with 3.1 million.
A Zuora spokesman said Netflix figure did not specify whether this included non-active accounts and Virgin Media pay TV users who receive the service as part of their package.
The average UK subscriber spends £17.53 (US$21.71) monthly on video streaming services, which Zuora said suggests “many sign up to multiple services simultaneously due to a lack of price and content options which would suit subscribers’ more individual viewing needs”.
The average monthly spend on cable and satellite platforms was £60.83, which highlights the fact Sky and Virgin Media still focus on flat fees for large channel bundles.
Another finding of the report, A Nation Subscribed: 2016 State of the UK Subscription Economy, showed that four million Brits with SVOD services did not plan to ever buy a DVD or Blu-Ray again.
“The popularity of video streaming services in the UK seems to be unabated as the likes of Netflix and Amazon Prime have changed the way we consume content forever,” said Zuora CEO Tien Tzuo.
“The heat is on for streaming providers to sign up as many hungry UK viewers as they can, and the winner in this race will be the company that not only delivers the most compelling content, but also the right price packages that meet each subscriber’s individual expectations.”
More findings from the report:
• 59% say Netflix, Amazon and other SVOD services are ‘integral’ to their lives
• 81% cite the ability to enjoy content ‘in a way that suits them’ was a main benefit of SVOD services
• 75% cite new content suited to their tastes
• 56% cite the ability to stream on multiple devices
• Two million Brits subscribe to at least on subscription product or service (including financial services, online and software storage, food and drink services, music streaming services and media publications)