NEWS18 May 2016

Streaming devices pushing OTT use in homes

Media News Technology Trends UK

UK – Low-cost streaming devices such as Amazon Fire Stick, Roku and Google Chromecast are driving OTT (over the top) video-on-demand use in UK homes, according to the latest wave of Mediabug research.

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The bi-annual research from tech and media research company Decipher among 3000 UK consumers found that while it had previously reported a slowdown in uptake of services such as Netflix and Amazon Prime Instant Video the increasing prevalence of new streaming devices has turned this around.

This report was the first time that devices enabling OTT video streaming (where content is delivered via the internet but without the need for a traditional subscription) had a significant impact on uptake.

The relatively new Amazon Fire TV Stick saw claimed ownership increase from 2% to 6% of online consumers – the equivalent of about 1.4 million homes. The larger (but more expensive) Amazon Fire Box (similar in size and shape to Apple TV) sold 450,000 devices over the same period. These have proved popular because they allow a user to access Netflix and BBC iPlayer as well as use Amazon’s own video services. 

Elsewhere in Mediabug Wave 8, 30% of respondents now claim to have an SVOD subscription, up from 23% in Q1 2015. Netflix is the main provider, with 23% of online consumers claiming to have a subscription, 13% for Amazon Prime Instant Video and 6% for NOW TV.

ITunes remains the leading ‘download to own’ provider at 12%, although growth has been relatively static since 2013. However sales of ‘download to own’ formats via Amazon Instant Video recorded the biggest rise, with a 3% point growth year on year.  

Director of Decipher Media Research Dr. Hamish McPharlin said: “Mediabug is showing that the internet video market, while still growing, is already beginning to evolve. The popularity of OTT devices is unlocking a larger user-base for online VOD, and over the next few waves we expect this to continue as both competition and average broadband speed increases”.