According to MTM, some 1.1m consumers intend to subscribe to the service by the end of this year, taking the service’s total past the 10m subscriber mark.
MTM says that Netflix subscribers are among the most satisfied users of SVOD services in the UK, with 88% claiming to be satisfied – the highest rating for any subscription TV or video service. This means that churn levels for the service are a less significant challenge than for other SVOD offerings.
According to MTM, Netflix’s integration as part of the Sky Q offering could support further growth for the SVOD service, with 200,000 current Sky Q users looking to subscribe to Netflix by the end of 2018.
MTM says the ability to easily access Netflix’s service on the primary TV screen will likely increase Netflix’s share of overall viewing within Sky Q homes, pointing out that 31% of all cable operator Virgin Media’s homes with Tivo advanced TV set-tops currently access Netflix via their set-top box.
According to MTM’s ScreenThink market research tracker, based on a survey of over 3,000 UK online users, almost 25% of internet users say that services such as Netflix and YouTube are the first services they turn to when looking for TV or video content, rising to 39% of 16-24 year-olds.
Conversely, 54% of UK pay TV subscribers now believe that their TV service is overpriced, and 1 in 4 are thinking about cancelling their subscription.
“The most recent ScreenThink study provides a fascinating snapshot of a market in transition, demonstrating the significant impact of Netflix and other OTT video services in the UK market,” said Jon Watts, managing partner at MTM.
“The UK’s broadcasters and pay-TV providers remain in a strong position and have developed world-class OTT products – the BBC iPlayer, All4, the ITV Hub, My5 and Now TV – but we’re clearly seeing signs of significant shifts in consumer attitudes and perceptions of quality, in terms of content, value for money and innovation.”