LONDON (Reuters) – The variety of Britons subscribing to TV providers like Netflix, Amazon and Sky’s NOW TV, has overtaken conventional satellite tv for pc and cable TV for the primary time, media regulator Ofcom stated on Wednesday.
The shift in the way in which TV content material is consumed induced the quantity of income generated from pay-TV to fall for the primary time after years of sustained development, the analysis found.
Netflix, Amazon and NOW TV attracted 15.four million subscribers within the first quarter, forward of 15.1 million pay-TV contracts, Ofcom stated citing BARB Establishment Survey information.
But conventional pay-TV, similar to Virgin Media’s cable and Sky’s satellite tv for pc providers, nonetheless generated considerably extra income than video-on-demand subscriptions.
Pay-TV subscription income of 6.four billion kilos in 2017 was down 2.7 p.c year-on-year, however nonetheless nicely forward of the 895 million kilos generated by video streaming providers, in keeping with Ofcom’s calculations.
Sky, Britain’s greatest pay-TV company that’s on the centre of a bidding battle between U.S teams 21st Century Fox and Comcast, launched its NOW TV service in 2012, geared toward prospects who didn’t wish to be tied to a standard contract.
Ofcom Chief Executive Sharon White stated the speedy change in what we watch and the way we watch had profound implications for the UK tv business.
“We have seen a decline in revenues for pay TV, a fall in spending on new programmes by our public service broadcasters, and the growth of global video streaming giants,” she stated. “These challenges can’t be underestimated.
“But UK broadcasters have a historical past of adapting to alter. By making the most effective British programmes and dealing collectively to succeed in individuals who are turning away from TV, our broadcasters can compete within the digital age.”
The period of time spent watching broadcast tv on a TV set continued to say no, Ofcom stated in its Media Nations: UK report, standing at three hours 22 minutes a day, down 9 minutes on 2016 and 38 minutes since 2012.
More content material is being watched on cell gadgets, with 16-34 yr olds main the cost, Ofcom stated. Less than half of youthful individuals’s complete each day viewing of four hours 48 minutes went to broadcast content material, whereas they spent slightly below an hour a day watching video on YouTube.
Reporting by Paul Sandle; Editing by Alexandra Hudson