About a quarter of UK households claim to subscribe to Netflix, the on-demand provider of TV shows and movies. The service has shown a significant growth by adding 1.4 million between Q4 2014 and Q4 2015. Other subscription video on demand services (SVOD) in the country such as Amazon managed to get grab 500,000 households, whereas Now TV added 300,000 subscribers.
According to data provided by Broadcasters' Audience Research Board (Barb), which provides official viewing figures for UK television audiences, the adoption of SVOD continues to grow at a rapid rate, with 24% of the household subscribed to Netflix, Amazon Video or Sky's Now TV in the fourth quarter 2015, when compared to 14% during Q1 of 2014. While both Amazon Video and Now TV are growing, Netflix appears to be dominating the market.
The data suggests the video on demand service appeals to household who already consume a great deal of TV. About 40% of occupants of SVOD homes are aged 24 or under, when compared to 30% of the population on a whole.
Netflix and Amazon homes are significantly more likely to be cable or sky subscription homes. Access for cable and YouView homes is also high as a result of the deals Virgin Media, BT and TalkTalk have made with Netflix. About 30% of cable homes and 31% of YouView homes subscribe to Netflix compared to 13% of terrestrial-only households.
Amazon and Netflix are investing more in content designed in a bid to attract viewers in the UK, with Netflix's royal biopic The Crown costing £100m (£140m), whereas Amazon spending £160m to secure the services former Top Gear presenters of Jeremy Clarkson, Richard Hammond and James May, reports the Guardian.
The survey data suggests Netflix dominates among SVOD services, and even a much higher population of Amazon and Now TV also have Netflix. Some 82% of Netflix households subscribe to only one SVOD service when compared to 49% for Now TV and 54% for Amazon Video.