What you need to know
Live television viewing has declined substantially in the last ten years, with younger demographics watching half the broadcast time their predecessors did. This has come firstly due to the rise of DVR ownership and then through the shift to streamed on-demand viewing. The modern viewer can watch the content of their choosing, at the time of their choosing and across a wide range of connected devices. This has seen declining viewing figures and pressure on advertisers to find new forms of advertising to reach their audience. However, live television remains the dominant method of reaching a mass market, particularly though major sporting events.
The paid streaming market continues to be led by Netflix, although market competition is intensifying. Amazon is investing heavily in new content and will broadcast the Premier League in December. Meanwhile, major new streaming service launches from Disney and Apple are on the horizon. The diversification and financial power behind these brands could make it difficult for Netflix to retain its lead in the long term, with high production costs and a reliance on subscription fees. However, Netflix has the advantage of a brand synonymous with streaming and original content.
Competition is not purely from other streaming services, but the growing popularity of short-form video on social networks. Younger demographics are keen users of streaming platforms but also dedicate a lot of time to short-form video, particularly on YouTube. Broadcasters, such as Channel 4, are responding by investing in more short-form content aimed at younger people. This content is set to be released solely online as broadcasters look to engage younger demographics in new ways, rather than focusing on drawing them back to live TV broadcasts.
Products covered in this Report
This Report examines television viewing habits and attitudes of consumers in the UK. This refers to the consumption of video content accessed through the following sources (unless stated otherwise):
Linear broadcasts on digital TV channels (ie conducted at the time of scheduling, via free-to-air or paid-TV providers).
Video-on-demand (VoD) platforms that exist alongside a broadcaster’s/provider’s linear TV service in order to provide access to time-shifted content via the internet (eg BBC iPlayer, Sky Go etc).
Subscription video-on-demand (SVoD) services that require a monthly payment (eg Netflix, Now TV).
Other forms of online video service such as those that allow viewers to purchase individual shows (eg TalkTalk TV Store), or access TV programmes or clips on video streaming sites (eg YouTube) that are funded by advertising.
