Almost half of UK consumers have maintained their existing expenditure on paid video content services, despite cost of living pressures.
In its first UK Video Trends Report, TiVo Platform Technologies says on average, UK consumers subscribe to six paid video content sources, with an average monthly bill of £78.06.
However, while having access to multiple content sources, the report found UK consumers report considerable frustration with discovering new and interesting video content, with only one in 10 (11%) strongly liking recommendations they receive from any source.
“It’s clear that UK consumers are willing to both pay for content and watch ads to access the entertainment they want, but they have considerable frustration with discovering new and interesting video content in this ever-saturated market,” said Gabriel Cosgrave, general manager of EMEA at TiVo’s parent company Xperi. “It’s time for TV manufacturers to invest in creating personalised content experiences across devices that provide dynamic, highly relevant recommendations based on preferences and behaviours to give stand-out experiences and minimise churn.”
Of the respondents who pay for video content, 81% have a subscription to video on-demand (SVOD) services such as Netflix and 57% subscribe to pay-TV services (eg, Sky, Virgin Media), but there is a considerable churn risk for both. Two in five (21%) respondents said they stopped their SVOD subscription within the last six months.
The report also reveals advertising-supported streaming services, including AVOD and FAST channels, such as those offered by Pluto TV and Freevee is still in a start-up phase. Only 42% of UK consumers said they watched AVOD or FAST channels, though the audience is generally resilient to advertising. 76% of UK consumers say they are ad-tolerant if it means not paying for content.
The report found:
- UK consumers prefer to binge: more than half (52%) prefer a whole season of a TV show to be available at once so they can binge it, compared to 21% who prefer episodes to be released once per week
- Social content reigns: the majority (81%) watches social video (eg, YouTube, TikTok), with 26% watching it on a TV several times a week
- Smart TV ownership is very encouraging: nearly three-quarters (74%) own a smart TV and 15% plan to make a purchase in the next six months (58% replacing a TV and 42% to add to another room or location)
- Trust in voice control needs to improve: top reasons for not using voice control are: not being comfortable talking into a device (32%); not recognising what they said (28%); and it’s faster to browse the menus (23%).
The TiVo Video Trends Report: UK surveyed 1,004 adults 18 and older living in the UK during the second quarter of 2023.
