Netflix is on track to exceed 10 million U.K. subscribers by the end of the year, according to new research from MTM’s ScreenThink market tracker.
According to the ScreenThink market research tracker, based on a survey of more than 3,000 U.K. online users, almost 25 percent of internet users in the country say that video offerings such as Netflix and YouTube are the first services they turn to when looking for TV or video content; this rises to 39 percent for 16- to 24 year-olds.
MTM reports that 1.1 million U.K. consumers intend to subscribe to Netflix before the end of the year; if realized, this takes the total number of subs above 10 million. In order to achieve this, however, churn levels must remain low. Netflix subscribers are reported to be among the most satisfied users in the U.K., with 88 percent claiming to be satisfied (the highest rating for any subscription TV or video service). The firm also suggests that the recent integration of Netflix into the Sky Q offer could support further growth for the SVOD service in the U.K.: MTM cited that 200,000 current Sky Q users are looking to subscribe to Netflix by the end of 2018.
The takeup of services like Netflix and Amazon Prime Video is also impacting how consumers perceive value for money in terms of their entertainment: 54 percent of U.K. pay-TV subscribers now believe that their TV service is overpriced, and one in four is thinking about canceling 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 U.K. market,” said Jon Watts, managing partner at MTM.
“The U.K.’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.”