The subscription video streaming market in the UK is due to exceed revenues of £1 billion (US$1.5 billion) by 2019, and account for 38% of the total UK video market, according to new research.
The report by market intelligence agency Mintel claims that the UK SVoD market has experienced “dramatic” growth in the past five years, climbing from a value of £28 million in 2009 to £437 million in 2014. Between 2013 and 2014 alone, the value of this market went up by 56%.
“By 2019, Mintel expects revenue from video streaming subscriptions to total £1.17 billion, which would see this sector account for 38% of the total UK video market – up from 20% in 2014,” according to the research.
Some 69% of Brits are estimated to have streamed online videos in the last 12 months, with 32% of this group having paid for a video streaming service.
Overall, usage of online streaming services was found to peak among younger people, with 91% of 16 to 24 year-olds accessing a videostreaming service in the past 12 months.
“Streaming services give people the ability to access a huge mix of content, including everything from classics to current material. As more consumers acquire connected devices such as smart TVs, which allow them to stream films and TV programmes directly, more people will pick digital sources over physical formats such as DVDs and Blu-rays,” said Paul Davies, senior leisure and technology analyst at Mintel.