UK Video Sector Moves to the Next Level: Futuresource Consulting

UK Video Sector Moves to the Next Level: Futuresource Consulting

LONDON, June 16, 2015 /PRNewswire/ --



Futuresource Consulting assessed the pulse of the UK video market in its latest video
insights report, announcing that this segment is in good health, driven by the growing
appetite for digital video services, the resilience of packaged video retail and a healthy
box office.



"The digital video market came of age in 2014, attracting new customers to both
transactional and digital video. The total digital market grew by an impressive 55% to
reach over GBP600 million, almost 4 times the level of 2011," says David Sidebottom,
Senior Marketing Analyst at Futuresource Consulting.



"Although SVoD more than doubled in 2014 and now accounts for over half of total
digital video at GBP350 million, nearly 30% growth in transactional digital video in 2014
was perhaps more impressive given the disappointing performance in 2013 and 2012," says
Sidebottom. 2014 was a breakthrough year for EST in particular, as new and evolving
services helped reach new customers. The total digital video market in 2015 is expected to
continue its momentum, with anticipated growth of 40%, reaching GBP870 million.



The SVoD sector in the UK goes from strength to strength with three key players,
Netflix, Amazon Prime Instant Video and Now TV continue to all grow impressively. At the
end of 2014 there were over 7 million individual subscriptions, this number is set to
almost double to 13.6 million by 2019, with associated value crossing the GBP1 billion
threshold in 2019.



The overall digital video sector was significantly helped by the rollout of fibre
broadband and the wider availability of services on a fast growing connected device base,
particularly relating to viewing on a TV screen. This combination has led to a vastly
improved viewing experience for many in the online video sector, encouraging consumers to
pay for premium content.



This perfect storm has enabled Netflix to capitalise on the growing trend to access
content via IP. On the back of its low-priced Internet Subscription VoD (SVoD) business
model, Netflix has grown its subscriber base to 60 million, of which 40 million are in the
USA, and Futuresource estimates that the global total will reach at least 80 million by
the end of 2016. This is approximately twice as big as any other Pay-TV content provider
except HBO, which is currently available in 114 million home worldwide.



Its international expansion has been a huge success, with most countries it has
launched in exceeding expectations. Its recent launch in Australia, where it is cited to
have had approximately 250,000 people accessing the US version of the website prior to
launch, is thought to have exceeded 500,000 subscribers in around a month. However, uptake
in Germany and France has been slower, with some resistance to the service, whilst Japan
could be its toughest and potentially most expensive launch yet, with language, culture
and content in Japan all very different to Netflix's previous experiences of international
launches.



For a deeper insight into the video insights reports which include comprehensive
market quantification for Pay-TV, packaged and digital video with 5 year forecasts, across
21 countries, please contact Leon Morris on +44 1582 500142 or please visit
http://reports.futuresource-consulting.com



Notes
Futuresource Consulting is a specialist research and knowledge-based consulting company,
providing organisations with insight into consumer electronics, digital imaging,
entertainment media, broadcast, storage media, education technology and IT. With a
heritage stretching back to the 1980s, the company delivers in-depth analysis and
forecasts on a global scale, advising on strategic positioning, market trends, competitive
forces and technological developments. http://www.futuresource-consulting.com .



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For industry comment, forecasting and trends contact Nicola Finn on:

Direct Dial: +44(0)1582-500131
Email: nicola.finn@futuresource-hq.com
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