U.K. Streaming Video Market Grew to £600M in 2014, Up 55%
According to a new report by London-based Futuresource Consulting, 2014 was a breakout year for online video in the United Kingdom. The market grew by 55 percent to reach £600 million. That puts it at almost 4 times the size it was in 2011, says David Sidebottom, a senior marketing analyst with Futuresource.
Subscription video-on-demand (SVOD) makes up the majority of that at £350 million. That amount doubled in 2014. The main players in SVOD were Netflix, Amazon Prime Instant Video, and Now TV, all of which showed growth last year. Over 7 million U.K. households subscribed to an SVOD service in 2014, a number Futuresource predicts will grow to 13.6 million by 2019. At that time, the SVOD market alone will be worth over £1 billion.
While the transactional video-on-demand (TVOD) market performed poorly in 2012 and 2013, it bounced back in 2014 and grew by almost 30 percent.
Factors that helped the streaming market grow in 2014 include the availability of fibre broadband and the expansion of the number of services available through televisions. Higher quality viewing experiences have encourage many to spend more on online content.
Futuresource expects the U.K. streaming video market to grow by 40 percent in 2015 and reach £870 million.
Not only are consumers buying connected TVs, they're using them to access online video services on a regular basis.