Parks: ‘UK cord cutters could double’
May 1, 2019
Research from Parks Associates finds that the percentage of UK broadband households stating that they are likely to cancel their pay-TV service has increased to 24 per cent in late 2018 from 12 per cent in late 2015. The intent to cancel is higher among households that watch online video services.
“Subscription streaming services, also called OTT service subscriptions within the industry, have become incredibly popular in the UK over the past two years, with 52 per cent of households subscribing to at least one,” said Brett Sappington, Senior Director, Research, Parks Associates. “Ofcom, the UK’s video regulator, announced in mid-2018 that OTT video service subscriptions have overtaken traditional pay-TV subscriptions, primarily due to the popularity of Now TV, Netflix, and Amazon.”
The number of OTT options available and adoption of OTT services in the UK today are similar to US figures in 2015. If the UK OTT market follows a similar pattern as the US, the average number of per-household OTT subscriptions in the UK should increase steadily over the next few years.
“Comparatively low online video penetration presents opportunities for local and global service vendors to expand their presence in the UK market,” Sappington said.
The report, entitled IoT in the UK – Entertainment Products and Services, provides insights on awareness, demand, and adoption for connected entertainment products and services.