According to a new report from UK telecoms regulator Ofcom, streaming app subscribers have outnumbered traditional broadcast TV viewers for the first time.
Services such as Netflix, Amazon Prime Video, and NOW TV are increasingly appealing because of expanding libraries, exclusive original content, on-demand access and minimal advertising.
The report highlights that access to original and exclusive programming is the main motivation for subscribing to on-demand services. A growing proportion of respondents also say they chose streaming because it can be cheaper than conventional pay-TV packages.
As more viewers move to streaming apps, linear TV content has declined and revenues for traditional broadcasters have fallen. This drop in investment has led to broadcasters repeating older shows more often to fill schedules.
The combined investment by the BBC, Channel 4, Channel 5 and ITV into new television programming—around £2.5 billion—has fallen to its lowest level in 20 years.
Last summer brought a symbolic moment underlining linear TV’s waning influence: a repeat broadcast of Blue Peter went unviewed, marking a rare instance where a scheduled show registered no audience.
A New Milestone
Ofcom’s research shows the shift away from linear TV has reached a clear milestone: the top three streaming services—Netflix, NOW TV and Amazon Prime Video—have reached a combined 15.4 million subscribers, while pay-TV subscribers have dropped to 15.1 million.
Among these, Netflix remains the market leader. Its UK subscriber base grew by 32 percent year-on-year, reaching about 9.1 million subscribers in March 2018.
Amazon Prime Video is also gaining traction. Its growth is partly driven by the bundled benefits of Amazon Prime—such as free delivery—but Ofcom notes that fewer respondents now cite free delivery as the main reason for subscribing to Prime Video: this fell from 71% in Q1 2017 to 51% in Q1 2018, suggesting Prime Video is increasingly attracting viewers on the strength of its own content.
Changing Landscape
Live sports has traditionally kept many viewers tied to cable and satellite packages. However, on-demand platforms with growing revenues and audiences are increasingly securing sports rights themselves.
For example, Amazon won the rights to stream 20 live English Premier League matches per season in the UK from 2019 as part of a three-year deal—an example of streaming platforms moving into live-event broadcasting.
Most people still watch television on a TV set, whether the content is streamed on-demand or broadcast in linear form. Adoption of on-demand services is strongest among younger viewers, while those aged 55 and over still account for more than half of traditional broadcast TV viewing.
Ofcom’s findings make clear that TV viewing in the UK is shifting rapidly. Traditional broadcasters and pay-TV providers now face a choice: adapt to changing viewing habits or risk losing further ground.
Ofcom’s full report is available from Ofcom (PDF).
What do you think about Ofcom’s latest findings? Share your thoughts in the comments.