Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Growth of digital formats maintains equilibrium in the video market
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- Figure 1: Value of the UK video market, 2011-16
- Video market to grow on the back of strong streaming and on-demand segments
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- Figure 2: Forecast for the value of the UK video market, 2011-21
- Streaming to become the largest single segment in the video market
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- Figure 3: Forecast for the value of the streaming subscriptions segment, 2011-21
- Growth in on-demand segment to continue
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- Figure 4: Forecast for the value of the on-demand segment, 2011-21
- Physical ownership to decline further as the segment fails to match the value proposition of streaming services
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- Figure 5: Forecast for the value of the physical ownership segment, 2011-21
- Growth in digital ownership will not balance out declines in physical ownership
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- Figure 6: Forecast for the value of the digital ownership segment, 2011-21
- Binge-watching culture pushes broadcast TV providers to ‘Netflixify’
- Streaming services’ original content meets mainstream film and TV
- Device usage pushes viewers towards connected entertainment
- Younger viewers turn to ‘alternative’ video media
- Companies and brands
- Netflix’ library becomes available offline
- Virgin Media and NOW TV (Sky) launch set-top boxes aimed at integrating streamed content
- Amazon takes first steps towards tiered video subscriptions
- Google Play starts selling movies in 4K
- Niche streaming services find success by offering more than content
- Film studios and streaming providers dominate advertising expenditure
- Streaming providers focus marketing on digital channels
- The consumer
- Broadcast TV is first choice for frequent viewing
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- Figure 7: Film and TV show viewing habits, December 2016
- Physical video media more likely to be viewed less than once per week
- Netflix reaches half of all video streaming users
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- Figure 8: Usage of streaming and on-demand services, December 2016
- Four in 10 use three or more video streaming services
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- Figure 9: Repertoire of streaming and on-demand services used, December 2016
- TV screens are the viewing device of choice
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- Figure 10: Devices used to watch films and TV shows, December 2016
- Device-agnostic approach to content distribution is key for young viewers
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- Figure 11: Repertoire of devices used to watch films and TV shows, December 2016
- Exclusive content seen as feature most worth paying for
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- Figure 12: Features of video streaming services seen as worth paying more for, December 2016
- Three in 10 buy DVDs or Blu-rays
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- Figure 13: Film and TV show ownership, December 2016
- DVD collectors are more invested in video across all channels
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- Figure 14: Film and TV show ownership, by film and TV viewing habits, December 2016
- Video streaming services take on ownership and pay-TV
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- Figure 15: Attitudes towards video media and services, December 2016
- Streaming services need to facilitate content selection
- What we think
Issues and Insights
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- Where next for streaming providers after original content?
- The facts
- The implications
- DVD and Blu-ray to go the way of vinyl?
- The facts
- The implications
The Market – What You Need to Know
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- Growth of digital formats maintains equilibrium in the video market
- Video market to grow on the back of strong streaming and on-demand segments
- Binge-watching culture pushes broadcast TV providers to ‘Netflixify’
- Streaming services’ original content meets mainstream film and TV
- Device usage pushes viewers towards connected entertainment
- Younger viewers turn to ‘alternative’ video media
Market Size and Forecast
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- Growth of digital formats maintains equilibrium in the video market
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- Figure 16: Value of the UK video market, 2011-16
- Figure 17: % of the UK video market represented by segments, 2011-16
- Video market to grow on the back of strong streaming and on-demand segments
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- Figure 18: Forecast for the value of the UK video market, 2011-21
- Forecast methodology
Market Segmentation
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- Streaming to become the largest single segment in the video market
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- Figure 19: Forecast for the value of the streaming subscriptions segment, 2011-21
- Growth in on-demand segment to continue
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- Figure 20: Forecast for the value of the on-demand segment, 2011-21
- Physical ownership to decline further as the segment fails to match the value proposition of streaming services
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- Figure 21: Forecast for the value of the physical ownership segment, 2011-21
- Growth in digital ownership will not balance out declines in physical ownership
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- Figure 22: Forecast for the value of the digital ownership segment, 2011-21
Market Drivers
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- Binge-watching culture pushes broadcast TV providers to ‘Netflixify’
- Streaming services’ original content meets mainstream film and TV
- Device usage pushes viewers towards connected entertainment
- Younger viewers turn to ‘alternative’ video media
Companies and Brands – What You Need to Know
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- Netflix’ library becomes available offline
- Virgin Media and NOW TV (Sky) launch set-top boxes aimed at integrating streamed content
- Amazon takes first steps towards tiered video subscriptions
- Google Play starts selling movies in 4K
- Niche streaming services find success by offering more than content
- Film studios and streaming providers dominate advertising expenditure
- Streaming providers focus marketing on digital channels
Launch Activity and Innovation
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- Netflix’ library becomes available offline
- Virgin Media and NOW TV (Sky) launch set-top boxes aimed at integrating streamed content
- Amazon takes first steps towards tiered video subscriptions
- Google Play starts selling movies in 4K
- Niche streaming services find success by offering more than content
Advertising and Marketing Activity
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- Film studios and streaming providers dominate advertising expenditure
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- Figure 23: Total above-the-line, online display and direct mail advertising expenditure on video, by advertisers, 01/01/2016-01/01/2017
- Streaming providers focus marketing on digital channels
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- Figure 24: Total above-the-line, online display and direct mail advertising expenditure on video, by media type, 01/01/2016-01/01/2017
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 25: Attitudes towards and usage of selected brands, February 2017
- Key brand metrics
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- Figure 26: Key metrics for selected brands, February 2017
- Brand attitudes: Netflix associated with quality, while Amazon inspires trust and loyalty
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- Figure 27: Attitudes, by brand, February 2017
- Brand personality: Streaming services generally seen as fun and vibrant, but TalkTalk TV Store does not share this positive image
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- Figure 28: Brand personality – Macro image, February 2017
- Flexibility is NOW TV’s most notable feature, while Netflix is seen as cool
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- Figure 29: Brand personality – Micro image, February 2017
- Brand analysis
- Netflix enjoys a positive image across demographics
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- Figure 30: User profile of Netflix, February 2017
- NOW TV has a strong association with flexibility, despite lower usage than Netflix and Amazon
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- Figure 31: User profile of NOW TV, February 2017
- Amazon has a broadly positive image, but is more likely to be perceived as expensive than its competitors
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- Figure 32: User profile of Amazon Instant Video, February 2017
- TalkTalk TV Store sits in the shadow of its competitors
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- Figure 33: User profile of TalkTalk TV Store, February 2017
The Consumer – What You Need to Know
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- Broadcast TV is first choice for frequent viewing
- Physical video media more likely to be viewed less than once per week
- Netflix reaches half of all video streaming users
- Four in 10 use three or more video streaming services
- TV screens are the viewing device of choice
- Exclusive content seen as feature most worth paying for
- Tiered subscriptions are nearly as attractive as exclusive content
- Three in 10 buy DVDs or Blu-rays
- DVD collectors are more invested in video across all channels
- Video streaming services take on ownership and pay-TV
- Streaming services need to facilitate content selection
Film and TV Show Viewing Habits
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- Broadcast TV is first choice for frequent viewing
- Physical video media more likely to be viewed less than once per week
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- Figure 34: Film and TV show viewing habits, December 2016
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- Figure 35: Film and TV show viewing habits, December 2016
Streaming, On-demand and Pay-TV Usage
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- Netflix reaches half of all video streaming users
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- Figure 36: Usage of streaming and on-demand services, December 2016
- Four in 10 use three or more video streaming services
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- Figure 37: Repertoire of streaming and on-demand services used, December 2016
- All 4’s hybrid identity promotes frequent usage
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- Figure 38: Subscription streaming and on-demand services used, by film and TV show viewing habits, December 2016
- Pay-TV usage not stratified by age
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- Figure 39: Usage of pay-TV services, December 2016
Viewing Devices
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- TV screens are the viewing device of choice
- Opportunities for streaming subscription services with students
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- Figure 40: Devices used to watch films and TV shows, December 2016
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- Figure 41: Devices used to watch films and TV shows, December 2016
- Device-agnostic approach to content distribution is key for young viewers
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- Figure 42: Repertoire of devices used to watch films and TV shows, December 2016
Features of Video Streaming Services
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- Exclusive content seen as feature most worth paying for
- 4K content makes Amazon marginally more attractive to male viewers
- Tiered subscriptions are nearly as attractive as exclusive content
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- Figure 43: Features of video streaming services seen as worth paying more for, December 2016
Film and TV Show Ownership
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- Three in 10 buy DVDs or Blu-rays
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- Figure 44: Film and TV show ownership, December 2016
- DVD collectors are more invested in video across all channels
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- Figure 45: Film and TV show ownership, by film and TV viewing habits, December 2016
Attitudes towards Video Media and Services
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- Video streaming services take on ownership and pay-TV
- Streaming services need to facilitate content selection
- Consumers do not want to get rid of their DVD collections in favour of digital video
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- Figure 46: Attitudes towards video media and services, December 2016
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Market forecast
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- Figure 47: Forecast for the value of the UK video market, 2016-21
- Streaming subscriptions forecast
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- Figure 48: Forecast for the value of the streaming subscriptions segment, 2016-21
- On-demand forecast
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- Figure 49: Forecast for the value of the on-demand segment, 2016-21
- Physical ownership forecast
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- Figure 50: Forecast for the value of the physical ownership segment, 2016-21
- Digital ownership forecast
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- Figure 51: Forecast for the value of the digital ownership segment, 2016-21
- Forecast Methodology
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