A quarter of UK households now claim to subscribe to one of the three main subscription video on demand services.
According to the BARB Establishment Survey, 24% of UK households subscribed to Netflix, Amazon Video or Sky’s Now TV in Q4 2015, compared to 14% in Q1 2014. BARB, which is owned by the UK’s leading broadcasters, says the figures show that SVOD appears to be complementing rather than replacing traditional linear TV.
Netflix remains the standout service; the number of households with Netflix grew by 1.4m between Q4 2014 and Q4 2015, compared to an increase of 0.5m households for Amazon Video and 0.3m households for Now TV.
While the Establishment Survey doesn’t look at viewing figures it does reveal the type of household that is subscribing. The data suggests SVOD appeals to households that already consume a large amount of TV. Penetration in cable and YouView homes is particularly high because of the deals Virgin Media, BT and TalkTalk have made with Netflix; 30% of cable homes and 31% of YouView homes take Netflix compared to 13% of terrestrial only households.
Separately, Sky also reports an overlap between its service and Netflix, even though its subscribers need a separate device to view the SVOD service.
Netflix and Amazon Video homes are more likely to be on cable or satellite homes than average. Not so Now TV, which is marketed at terrestrial households.
Not only is there overlap between traditional pay-TV services and their SVOD counterparts, but also between the SVOD services themselves.
82% of Netflix households subscribe to only one SVOD service, compared with 49% for Now TV and 54% for Amazon Video. This could be attributed to a high satisfaction with Netflix, but potentially a sign of Amazon Prime subscribers, many of who will have the video service bundled in with speedier delivery of their parcels, may not be as committed.
