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The surge in demand for streaming services since the novel coronavirus pandemic forced much of the word indoors has been a much-discussed and well-documented topic, with Netflix stock soaring and Disney having amassing more than 60 million Disney+ subscribers by the end of June. But now — at least in the U.K. — a monetary figure has been put on the growth.
According to a new report, monthly spend on online streaming services has
increased by more than £100 million ($132 million) since lockdown began in March in the U.K.
The “U.K. at Home Video Trends 2020” report — from cloud video platform Grabyo — surveyed more than 2,000 U.K. consumers on their video consumption and purchasing habits, following a previous survey of 2,000 consumers in January. The research analyzed how the radical change in the lives of U.K. consumers, caused by the COVID-19 pandemic, has affected the video industry.
The report revealed that 82 percent of U.K. consumers currently pay for video services, with one-third of these video customers subscribing to at least one new streaming service since March 2020. Using the latest statistics from the Office of National Statistics for the U.K. adult population, the findings of the report suggest an increase of over £100 million ($132 million) monthly spend on streaming.
According to the report, this figure would represent a 25 percent increase over pre-lockdown streaming expenditures in the country, rising from just under £400 million ($527 million) per month to £500 million ($660 million).
This huge jump in streaming revenues looks set to continue, with 80 percent of streaming customers reporting they are planning to continue with the same amount of streaming subscriptions once social isolation measures are lifted in the U.K.
An important trend to follow, the report notes, is how social isolation has led to closer alignment in video consumption habits between older and younger age groups. The growth in streaming subscriptions has risen more than 20 percent for U.K. consumers aged over 50 since March, with 60 percent of U.K. video customers aged between 50-64 now paying for streaming.
When asked if they were planning to stop paying for broadcast TV services, 60 percent of pay-TV customers indicated that they had already cut the cord or planned to within the next five years.
“The COVID-19 pandemic has permanently accelerated the shift to online streaming in the UK,” said Grabyo CEO Gareth Capon. “With most of the U.K. population staying at home, online streaming and pay TV are going head to head in the at-home arena, competing on price, flexibility and the quality and breadth of content. Our findings show that online streaming has come out on top and these changes in the market are here to stay.”
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