With the rapid growth in OTT services experienced over the past 5 years, today’s viewer consumes more content than ever before.
More than 1 billion minutes of content are now watched weekly online.
Viewing on mobile devices is becoming increasingly more prevalent, over the last year consumption of TV like content on mobile devices increased by 4 hours a week as it becomes part of many people’s daily commute.
The proliferation of platforms and choice available to consumers continues to create significant opportunities for OTT providers in the UK market. In particular, SVOD is driving a significant portion of that growth.
In the past year SVOD services have grown 112% in the UK with Netflix now being available in 26% of homes with Amazon Prime in 14% of UK homes.
"In the past year SVOD services have grown 112% in the UK with Netflix now being available in 26% of homes with Amazon Prime in 14% of UK homes."
This trend looks set to continue with 90% of 18-34yr old’s streaming at least some of their content. Meaning as coherent OTT strategy is vital for all pay-TV operators.
Despite the growth seen in consumption many pay-TV operators are struggling to maintain their subscriber bases.
From Q3 ’15 to Q1 ’17 pay-TV subscriptions declined by 19%. Part of the problem faced by pay-TV operators has been the difficulty for the consumer to transition between platforms.
Consumers no longer expect to be tied to a specific device or box in order to view pay-TV content.
In many cases the route to OTT for traditional pay-TV companies has involved new technology partners and introduced new customer management and billing solutions.
This has meant customers needing to enter into new billing arrangement when transitioning to view on a new platform.