Study: UK needs guidance to optimise streaming spend
May 5, 2022
In March, Netgem teamed with Point Topic and commissioned an independent firm to conduct a UK survey on TV and streaming habits, ISPs and what channels people were watching.
The study suggests that even though bundling of pay-TV is still high at 45 per cent of households, adoption of streaming services is even higher – with penetration rates that sometimes reach 87 per cent. The enormous usage is notable for ad-funded services such as Public Service Broadcasters, AVoD services, as well as YouTube and TikTok.
Video streaming services such as Prime Video and Netflix provide subscribers with hundreds of thousands of hours of content whilst allowing them to opt-in and out of the rolling monthly service easily. However, according to the study, a growing disconnect between premium services subscriptions and usage has been observed, suggesting that the fragmentation of content is confusing for many viewers.
A recent Kantar report points out that British households now subscribe to an average of 2.4 of streaming services with usage – only 15 per cent higher than three years ago – when uk homes’ streaming service subscription averaged 1.2. It is now increasingly common that viewers subscribe to streaming services they won’t end upwatching because they have no interest in it anymore or because they forgot they once subscribed to it.
Based on the data collected and analysed by the independent survey firm regarding usage, it transpired that viewers are currently far from optimising their entertainment streaming spend. This insight resonates with recent news from popular streaming services like Netflix reaching a ceiling in subscriber growth by losing 200,000 subscribers in Q1- and expecst to lose another 2 million in Q2.
Not only do viewers require more guidance in order to optimise their entertainment streaming spending, they also need less barriers to access content. Indeed, as stated in the report, as many as 35 per cent of households don’t have access to an aerial and therefore can’t watch Freeview live channels in some regions.
Sylvain Thevenot, Chief Commercial & Customer Officer at Netgem, said: “It is time for the viewers to be put first, lower the artificial barriers to quality PSB content, and remove the streaming experience fragmentation. In this time of cost-of-living crisis, when viewers have a strong desire to save they can turn to Netgem TV as we are obsessed about bringing Brits the ability to‘Stream Big, spend small’.”