Research: UK video content spend resilient
September 14, 2023
Research from entertainment technologist TiVo for IBC 2023 reveals that almost half of all UK consumers have not reduced their video spending as a result of increases in the cost of living. On average, UK consumers subscribe to six paid video content sources, with an average monthly bill of £78.06 (€90.71).
However, while having access to multiple content sources, the inaugural TiVo Video Trends Report: UK found UK consumers report considerable frustration with discovering new and interesting video content, with only one in 10 (11 per cent) strongly liking recommendations they receive from any source.
Of the respondents who pay for video content, 81 per cent have a subscription to video on demand (SVoD) services such as Netflix and 57 per cent subscribe to pay TV services (e.g., Sky, Virgin Media), but there is a considerable churn risk for both. Two in five (21 per cent) respondents said they stopped their SVoD subscription within the last six months.
The report also reveals the world of Advertising-Based Video on Demand (AVoD)/Free Ad-Supported Streaming TV (FAST), such as Pluto TV and Freevee, is still in early stages of its path forward, with only 42 per cent of UK consumers watching AVoD or FAST channels. Further uptake looks promising, however, as 76 per cent of UK consumers say they are ad-tolerant if it means not paying for content.
“It’s clear that UK consumers are willing to both pay for content and watch ads to access the entertainment they want, but they have considerable frustration with discovering new and interesting video content in this ever-saturated market,” said Gabriel Cosgrave, general manager of EMEA at TiVo parent company Xperi. “It’s time for TV manufacturers to invest in creating personalised content experiences across devices that provide dynamic, highly relevant recommendations based on preferences and behaviours to give stand-out experiences and minimise churn.”
- UK consumers prefer to binge: More than half (52 per cent) prefer a whole season of a TV show to be available at once so they can binge it, compared to 21 per cent who prefer episodes to be released one per week
- Social content reigns: The majority (81 per cent) watches social video (e.g., YouTube, TikTok), with 26 per cent watching it on a TV several times a week
- Smart TV ownership is very encouraging: Nearly three-quarters (74 per cent) own a smart TV and 15 per cent plan to make a purchase in the next six months (58 per cent replacing a TV and 42 per cent to add to another room or location)
- Trust in voice control needs to improve: Top reasons for not using voice control are: not being comfortable talking into a device (32 per cent); not recognising what they said (28 per cent); and it’s faster to browse the menus (23 per cent).