UK consumers increase monthly spend on streaming by over £100MN since lockdown | Ratings/Measurement | News | Rapid TV News
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
The new normal of domestic video in the UK looks to be increasingly online based as the latest Grabyo new UK At Home Video Trends has revealed that a third of video customers have subscribed to additional online streaming services since March 2020, increasing monthly spend by over 25% to more than £100 million.
grabyo streaming 20Aug2020
Grabyo’s UK At Home Video Trends 2020 report surveyed over 2,000 UK consumers on their video consumption and purchasing habits, following a previous survey of 2000 consumers in January. The research analysed how the radical change in the lives of UK consumers, caused by the Covid-19 health pandemic, has affected the video industry.

In addition to spend breaking the £100 million barrier, the report also found that four-fifths of video customers plan to continue with their higher number of streaming subscriptions once social isolation measures are lifted.

Overall, the study found that online streaming services now have 65% market penetration in the UK, with total adoption up 7% since January 2020. Pay-TV subscriptions have decreased 9% with a current penetration of 53%.

Yet the report also stressed that an important trend to follow was that growth in online streaming subscriptions has risen more than 20% for UK consumers aged over 50 since March, with 60% of UK video customers aged between 50-64 now paying for online streaming. Social isolation has accelerated the overall adoption of streaming, leading to closer alignment in video consumption habits between older and younger age groups.

When asked if they were planning to stop paying for broadcast TV services, three-fifths of pay-TV customers indicated that they had already cut the cord or planned to within the next five years.

The positive news for the pay-TV industry is that in January 2020, customers suggested that pay-TV would have a market share of just 28% in five years and this has risen to 40% in the more recent survey. Those who currently subscribe to pay-TV services see value in satellite and cable TV packages, but this may change once social isolation measures are lifted and flexibility and accessibility become priorities once more.

“The Covid-19 pandemic has permanently accelerated the shift to online streaming in the UK,” said Grabyo CEO Gareth Capon commenting on the UK At Home Video Trends 2020 report. “With most of the UK population staying at home, online streaming and pay-TV are going head to head in the at-home arena, competing on price, flexibility and the quality and breadth of content. Our findings show that online streaming has come out on top and these changes in the market are here to stay.”

The report also found the shift to digital consumption is also accelerating for ad-funded (free) video services. Free-to-air linear TV audiences have decreased by almost 15% since January, reaching 53%, while the number of consumers using social media regularly to watch video has increased to 68%.

During the absence of live sports and other events, many media organisations have taken to experimenting with live social video formats. The report’s findings suggest this type of viewing experience is now heading into the mainstream. “Back in February our Value of Video report stated that the future of the TV is the internet, and predicted this future wasn’t far away. This report reinforces that trend,” Capon added: Streaming services have been the big winners with consumers forced to stay at home.”