Streaming Subscribers Overtake Pay-TV Customers for First Time in the U.K.
The level to which Netflix and Amazon are redefining the TV picture has hit home in the U.K. as new data from media regulator Ofcom show subscriptions to streaming services outnumbering those to traditional pay-TV for the first time. Pay-TV revenues also dropped for the first time after years of sustained growth, Ofcom said.
The numbers are sobering reading for pay-TV heavyweight Sky and Britain’s other major pay-TV firm, Virgin. A mitigating factor is that Sky itself has a streaming service, Now TV, and Virgin also offers a range of services beyond pay TV. But the inescapable fact is that Netflix and Amazon have reshaped the subscription business in Britain.
The findings are contained in Ofcom’s first Media Nations report, which covers TV trends in the U.K. and was issued early Wednesday, British time. It highlights a “competitive shift within the U.K. television industry, driven by the rise of the major global Internet companies,” as well as by changing consumer behavior.
Subscribers to Netflix, Amazon Prime and Now TV hit 15.4 million in the first quarter of the year, compared to 15.1 million traditional pay-TV customers. Annual pay-TV revenues fell 2.7% in 2017 to £6.4 billion ($8.4 billion), while increased streaming revenues boosted the overall online video sector in the U.K., which was up 28% at £2.3 billion ($3 billion).
Related
No comments:
Post a Comment