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Forecast Period
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2024-2028
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Market Size (2022)
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USD13.65 Billion
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CAGR (2023-2028)
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5.10%
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Fastest Growing Segment
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SVOD
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Largest Market
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England
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United Kingdom OTT media
services market is anticipated to be driven by shifting consumer trend towards streaming
services from paid TV and increasing varieties of content with new information.
Technology is playing an
important role in increasing the importance of over-the-top (OTT) services
throughout the country. Cloud-based streaming services, support for live
content with Video-on-demand (VOD), a large content data base, zero-buffering,
adaptive bitrate streaming, and intuitive content discovery make over-the-top
(OTT) systems simple to use.
Similarly, several VOD
providers have made significant progress in developing their own audience
protection policies and procedures, such as Netflix's voluntary age ratings.
Netflix, in collaboration with the British Board of Film Classification,
provides BBFC age ratings and ratings information on its service (BBFC).Examples
include Disney's devotion to family protections on Disney+. However, this is
only done sometimes and voluntarily. Different platforms use different audience
protection procedures, like pin codes and warnings. Age ratings vary
considerably and are occasionally absent. Although there are some regulations
that VoD providers must go by various compliances to protect kids from harmful
content. Therefore, since content security has increased, the industry has
grown in the projected years.
Increasing Emergence of Video-on-Demand
Services Boost the Market Growth
The rapid growth of
video-on-demand (VoD) services like BBC iPlayer, ITV Hub, and Disney+,
particularly during the pandemic, has highlighted the gap between traditional
audience protection available on linear television such as free view,
satellite, or cable to newer video-on-demand services. VoD services have seen a
significant rise in popularity in the UK, with viewers now having instant
access to hundreds of hours of programme content, which has accelerated the
market growth during the forecast period. For instance, according to the
Secretary of State for Digital, Culture, Media, and Sport, in 2021, over 75% of
UK households estimate to have used at least one subscription VoD service.
Similarly, the most widely
used platform for user-generated videos online is still YouTube. According to
the Ofcom (The Office of Communications), the total number of YouTube videos
viewed by UK adults online in Q1 2021 was 22% higher than in Q1 2020. As of
March 2021, it has reached 31% of adult internet users in the UK.
Changing Audience Viewing
Habits Boost the Market Growth
Fundamental changes in
viewing patterns and industry structures are being fueled by the development of
international content providers. The availability of content for UK consumers
has significantly grown as a result of the rapid shift occurring in the
broadcasting and broader on-demand industries. A new approach to watch
television programs and "catch-up" on missed scheduled programmes was
heralded by advancements in technology and the increased accessibility of
quicker internet connections, further leading to increase in the market demand
during the projected period.
Increasing Subscription Streaming
Users Boost the Market Growth
The main reason for the rise
in popularity of subscription streaming platforms such as Netflix, Amazon Prime
Video, Disney+, Sky’s Now is that users have instant access to original and
high-quality content. With 17.1 million households subscribed, Netflix
continues to be the most popular SVoD (Subscription Video on Demand) provider
in the UK. Amazon Prime Video (46%) and Disney+ (23%) are the next-largest
providers. 7% of households have Sky's Now TV, and 6% have Apple TV in 2022. According
to the Ofcom (The Office of Communication), it was discovered that 5.2 million
households spend about £300 annually on the three services. The SVoD (Subscription
Video on Demand) sector experienced robust revenue growth in 2021, with a 27%
year-over-year increase to £2.7 billion, almost matching the impressive 28%
growth in 2020. This growth was driven by increase in pricing along with the
increase in subscriber numbers. Increasing subscription numbers have resulted
in increased market growth during the projected period.