Table of Contents
Executive Summary
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- The impact of COVID-19 on video and TV
- Short-, medium- and long-term impact on the industry
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- Figure 1: Expected impact of COVID-19 on video and TV, short, medium and long term, 18 August 2020
- The market
- Further fall overall in viewing of live TV in 2019
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- Figure 2: Average daily minutes of TV viewing, 2010-19
- Further retraction in advertising dents overall revenues
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- Figure 3: UK broadcast industry income, 2014-19
- Online video revenues continue to grow
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- Figure 4: Online audio-visual revenues, 2014-19
- Streaming services subscriber base increases from 2019
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- Figure 5: SVoD services per household, Q1 2019-Q1 2020
- Companies and brands
- Walt Disney Company launches its SVoD streaming service Disney+
- Apple TV+ launches in November 2019
- BritBox launches in November 2019
- Quibi launches mobile streaming platform during coronavirus lockdown
- The consumer
- Live TV viewing continues to be prevalent in majority of households
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- Figure 6: Live TV viewership, May 2020, June 2019, June 2018
- Freeview down and streaming up in the ways to view live TV
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- Figure 7: Live TV viewing platforms, June 2018, July 2019 and May 2020
- Small increase in on-demand viewing since 2019
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- Figure 8: On-demand TV viewing June 2019, June 2020
- Netflix tops the ratings for paid streaming services
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- Figure 9: Paid-for streaming services, May 2020
- High interest in a super-aggregator
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- Figure10: Interest in bundled subscription service, May 2020
- Drama the favourite genre
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- Figure 10: Genre of TV programmes watched, by time spent watching, May 2020
- Growth of niche streaming channels can cater to the super-fan
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- Figure 12: Interest in content-specific subscription streaming service, May 2020
- Nearly half think the licence fee should be stopped
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- Figure 11: Attitudes to the licence fee, May 2020
COVID-19 and Attitudes Towards TV and Video
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- Impact on the market
- Lockdown drives up total viewing time
- Spike in subscription service uptake but pay-TV revenue likely to take a hit
- Impact on consumers
- Consumers seek out how-to videos in lockdown
- Discomfort going to cinema and other venues will play into streaming services’ hands
- Impact on companies and brands
- Coronavirus hits advertising spend
- Disney+ arrives just in time to benefit from people staying home
Issues and Insights
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- COVID-19 opens up online communal viewing opportunities for streaming platforms and broadcasters
- Longer-term growth of SVoD depends on changing business models
The Market – Key Takeaways
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- Live viewing of television continues to decline
- Decline in UK broadcast industry income, though online audio-visual revenues increase
- Television’s multi-platform experience
- Must-see television moments show PSBs’ worth
- Entertainment still dominates genre ratings but popularity of documentaries continues to grow
Market Background
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- Further fall overall in viewing of live TV in 2019
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- Figure 12: Average daily minutes of TV viewing, 2010-19
- Cuts in advertising spend dent overall revenues
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- Figure 13: UK broadcast industry income, 2014-19
- Online video revenues continue to grow
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- Figure 14: Online audio-visual revenues, 2014-19
- Ratings war still sees BBC out in front
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- Figure 15: Channel share of TV viewing, 2019
- Genres still dominated by light entertainment
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- Figure 16: Share of TV audience, by genre, 2017, 2018 and 2019
- Streaming services subscriber base increases from 2019
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- Figure 17: SVoD services per household, Q1 2019-Q1 2020
Market Drivers
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- The Impact of COVID-19 on video and TV
- Short-, medium- and long-term impact on the industry
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- Figure 18: Expected impact of COVID-19 on video and TV, short, medium and long term, 18 August 2020
- Television’s multi-platform experience
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- Figure 19: Live and on-demand viewing habits on devices, July 2019-July 2020
- Must-see television moments can still create communal viewing occasions
- Viewing across devices helps boost overall viewing numbers
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- Figure 20: Top 10 TV shows of 2019, Average audience – individuals (000)
- Sleeper hits and viral success stories
- COVID-19 causes revamp in scheduling for major live TV channels
- Investment in developing talent could lead to more opportunities for smaller niche players on streaming services
- Younger viewers switch to free streaming services over traditional television
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- Figure 21: Generation Z attitudes to consuming streaming content, July 2020
- Free streaming services set to increase competition in crowded market
- Sporting landscape looks set for shake-up with entry of dedicated streaming service
- Premier League resources for potential direct-to-consumer platform
- The government launches consultation on licence fee decriminalisation
Companies and Brands – Key Takeaways
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- New streaming VoD services launch
- Quibi launches streaming platform during coronavirus lockdown
- Free streaming services set to increase competition in crowded market
- BBC launches group viewing tool with an eye on delivering more immersive content
Launch Activity and Innovation
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- Walt Disney Company launches Disney+ SVoD service
- Apple TV+ launches in November 2019
- BritBox arrives
- Quibi launches streaming platform during coronavirus lockdown
- New tools enabling communal online viewing on key platforms
- BBC launches group viewing tool with an eye on delivering more immersive content
- Third-party browser extensions allow for group viewing of Disney+ content via computer or laptop
- Netflix Party launches March 2020 enabling group viewing of Netflix content
- Amazon rolls out Watch Party in US with other markets likely to follow suit
- Niche streaming platforms cater for diverse interests
- Cinema’s loss is on-demand’s gain in age of COVID-19
- Pivot to on-demand will fuel longer-term battle with content and platform
The Consumer – Key Takeaways
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- April’s lockdown sees spike in viewing across platforms
- Streaming VoD services uptake soars
- Live TV viewing continues to be prevalent in majority of households
- Small increase in on-demand viewing since 2019
- Increase in paid-for streaming service demand since 2019
- Growth of niche streaming channels can cater to the super-fan
- Nearly half think the licence fee should be stopped
Impact of COVID-19 on Consumer Behaviour
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- April’s lockdown sees spike in viewing across platforms
- Streaming VoD services see spike in uptake
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- Figure 22: Average viewing of minutes per day, April 2020
- News output viewing figures showcase PSBs’ credibility
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- Figure 23: Top programmes by channel, 2020
- Social platforms spike with how-to videos and promoting communal connections
- Consumers’ immediate level of discomfort for cinema going will play into the hands of the streaming services
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- Figure 24: Consumer attitudes in visiting facilities, August 2020
- COVID’s residual impact should see streaming-service subscriptions weather post-lockdown churn
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- Figure 25: Consumer attitudes to the impact of coronavirus, 28 February-22 August 2020
- Consumer confidence can also help maintain subscription services post-COVID-19 spike
- Ad-supported streaming could help reduce churn
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- Figure 26: Trends in consumer confidence for the coming year, July 2020
Live TV Viewing
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- Live TV viewing continues to be prevalent in majority of households
- Compelling content can still cut through and create must-see moments
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- Figure 27: Live TV viewership, May 2020
- Freeview down and streaming up for live TV viewing
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- Figure 28: Live TV viewing platforms, June 2018, July 2019 and May 2020
- Stark generational divide in ways to watch TV
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- Figure 29: Live TV viewing platforms by age, June 2020
On-Demand Viewing
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- Small increase in on-demand viewing since 2019
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- Figure 30: On-demand TV viewing, June 2019 and June 2020
- Increase in paid-for streaming-service demand since 2019
- Good penetration among all age groups
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- Figure 31: Services used to watch on-demand content, June 2018, July 2019 and May 2020
Paid Streaming Services
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- Netflix tops the ratings for paid streaming services
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- Figure 32: Paid-for streaming services used, May 2020
- Content is (Tiger) King
- A quick start for Disney, but work to be done to engage older audiences
- Digital first approach will likely bring in more subscribers in the short and medium terms
- Amazon offers value for money and can be less susceptible to churn
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- Figure 33: Paid-for streaming services by age, May 2020
- Challengers face struggle to break through top three dominance
- BritBox can afford to take some risks
- Over a third of people have two paid-for subscription services
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- Figure 34: Repertoire of streaming services subscribed to, May 2020
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- Figure 35: Paid-for streaming services by repertoire of streaming services subscribed to, May 2020
- High interest in a super-aggregator
- Sky Q well placed to capitalise on consumers’ desire for convenience
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- Figure 36: Interest in bundled subscription service, May 2020
TV and Video Content Habits
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- Drama leads the way as people’s favourite genre
- Netflix’s comedy slate can help draw in and maintain younger audiences
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- Figure 37: Genre of TV programmes watched by time spent watching, May 2020
Interest in New Subscription Services
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- Growth of niche streaming channels can tailor to the super-fan
- Niche platforms can build communities around select interests
- Young males can be a warm target for sport-specific streaming service
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- Figure 38: Interest in content-specific subscription streaming service, May 2020
Views on the Licence Fee
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- Nearly half think the licence fee should be stopped
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- Figure 39: Attitudes to the BBC licence fee, May 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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