Share of UK broadband households planning to cancel pay-TV has doubled

Wednesday, May 1st, 2019
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Consumer research provides insights on connected entertainment consumption in the UK

New research from Parks Associates finds that the percentage of UK broadband households stating that they are likely to cancel their pay-TV service has increased to 24% in late 2018 from 12% in late 2015. ‘IoT in the UK – Entertainment Products and Services’ reports that the intent to cancel is higher among households that watch online video services.

Likelihood of Cancelling Pay-TV Service Next 12 Months - UK - 3Q 2015 versus 3Q 2018

“Subscription streaming services, also called OTT service subscriptions within the industry, have become incredibly popular in the UK over the past two years, with 52% of households subscribing to at least one,” said Brett Sappington, Senior Director, Research, Parks Associates. “Ofcom, the UK’s video regulator, announced in mid-2018 that OTT video service subscriptions have overtaken traditional pay-TV subscriptions, primarily due to the popularity of Now TV, Netflix, and Amazon.”

The number of OTT options available and adoption of OTT services in the UK today are similar to US figures in 2015. If the UK OTT market follows a similar pattern as the US, the average number of per-household OTT subscriptions in the UK should increase steadily over the next few years.

“Comparatively low online video penetration presents opportunities for local and global service vendors to expand their presence in the UK market,” Sappington said.

‘IoT in the UK – Entertainment Products and Services’ provides insights on awareness, demand, and adoption for connected entertainment products and services.

Additional research includes:

  • Freeview, online video, and premium pay TV are the leading video sources for UK broadband households.
  • 24% of UK households subscribe to two or more services compared to 43% of US households in 2018.