Report: One-Third of U.K. Broadband Homes Have an OTT Subscription

LONDON: Thirty-three percent of U.K. broadband households subscribed to an OTT video service as of Q3 2015, according to Parks Associates.

The Connected Consumer in Europe report also revealed that only 15 percent of U.K. households with pay TV subscribe to premium movie channels. U.K. households with pay-TV services are far more likely to have premium sports channels than pay-TV households in other European markets—currently, 32 percent of U.K. households with pay TV subscribe to a premium sports package.

“Overall OTT video usage in the U.K. favors broadcasters,” said Brett Sappington, the director of research at Parks Associates. “The most popular OTT video sources in the U.K. include BBC’s iPlayer, ITV Player, 4oD (now All4), and Demand5—all catch-up or on-demand offerings from broadcasters. New OTT video market entrants, especially those with paid services, will have to provide unique value in order to make substantial gains. However, the demand for interesting content is strong enough that there are market opportunities for new OTT video players. Nearly 20 percent of U.K. broadband households have recently used a Netflix service, despite the free OTT catch-up options.”