Accueil
Brits show huge appetite for VOD
Editor
| 17 June 2016
NetflixOrangeNapoleon once described the British as a nation of shopkeepers, but these days a nation of video-on-demand (VOD) fans may be a lot closer to the mark according to a YouGov study commissioned by Zuora.
The subscription technology expert’s survey, A Nation Subscribed: 2016 State of the UK Subscription Economy, found that subscription services being a huge part of the everyday lives of UK consumers, with 40 million people in the country subscribing to on-demand products and services. VOD is the most popular digital subscription, with more than a quarter (27%) of UK consumers subscribing to the likes of Netflix (24%, 12.4 million people), Sky Go (14%, 7.2 million) Amazon Prime (13%, 6.7 million) and Now TV (6%3.1 million). Disney Life, Hulu, Blinkbox and MUBI all registered under 1%.
The average British household spends £17.53 per month on VOD services, and on average British people spend 12% of their monthly disposable income on subscription music, TV, media and food services.
In the VOD space, 16-24-year-olds were leading adoption, with 44% having a current subscription to an online VOD service. This is compared with 26% having a subscription to cable/satellite services (26%). Yet the the demand for VOD was not the sole preserve of the young. Indeed, just over three-quarters of British people aged over 55 currently subscribe to at least one product or service. In addition, 15% of over 55s even say they “couldn’t live without some of their subscription services”.
In its report, Zuoara predicts that demand for both VOD and cable/satellite services will continue to rise in the next five years. It says that the world isn’t ending for the cable and satellite industry, but that viewers are just demanding different digital services, and different ways of paying for the content they actually want to watch. Indeed, the study shows that per month, the average British household is assumed to spend £60.83 on cable/satellite subscriptions and £17.53 on VOD subscriptions. The old 500-channel bundle is going away, but it will eventually unlock smarter, more focused content bundles and revenue opportunities for the companies that already have a direct pipe into our living room and a huge infrastructure that enables them to sell us additional products and services.
“We are witnessing a once-in-a-century shift from a product era to the dawn of a global Subscription Economy. The way consumers like to consume goods and services has changed dramatically. Today, consumers are looking for personalised outcomes and experiences,” said Zuora CEO Tien Tzuo.
“As consumers, we want immediate, convenient and flexible access to personalised services, which we only get through entering into ongoing, mutually beneficial relationships with brands. This has led to the rise of a new generation of businesses catering to this trend – the automatic and recurring delivery of razors before you run out, software updates for your connected car or countless albums or films at your fingertips whenever you want them. This transformation will ultimately affect every aspect of our personal and professional lives.”
The full results of the A Nation Subscribed: 2016 State of the UK Subscription Economy report are available here.
Editor
| 17 June 2016
NetflixOrangeNapoleon once described the British as a nation of shopkeepers, but these days a nation of video-on-demand (VOD) fans may be a lot closer to the mark according to a YouGov study commissioned by Zuora.
The subscription technology expert’s survey, A Nation Subscribed: 2016 State of the UK Subscription Economy, found that subscription services being a huge part of the everyday lives of UK consumers, with 40 million people in the country subscribing to on-demand products and services. VOD is the most popular digital subscription, with more than a quarter (27%) of UK consumers subscribing to the likes of Netflix (24%, 12.4 million people), Sky Go (14%, 7.2 million) Amazon Prime (13%, 6.7 million) and Now TV (6%3.1 million). Disney Life, Hulu, Blinkbox and MUBI all registered under 1%.
The average British household spends £17.53 per month on VOD services, and on average British people spend 12% of their monthly disposable income on subscription music, TV, media and food services.
In the VOD space, 16-24-year-olds were leading adoption, with 44% having a current subscription to an online VOD service. This is compared with 26% having a subscription to cable/satellite services (26%). Yet the the demand for VOD was not the sole preserve of the young. Indeed, just over three-quarters of British people aged over 55 currently subscribe to at least one product or service. In addition, 15% of over 55s even say they “couldn’t live without some of their subscription services”.
In its report, Zuoara predicts that demand for both VOD and cable/satellite services will continue to rise in the next five years. It says that the world isn’t ending for the cable and satellite industry, but that viewers are just demanding different digital services, and different ways of paying for the content they actually want to watch. Indeed, the study shows that per month, the average British household is assumed to spend £60.83 on cable/satellite subscriptions and £17.53 on VOD subscriptions. The old 500-channel bundle is going away, but it will eventually unlock smarter, more focused content bundles and revenue opportunities for the companies that already have a direct pipe into our living room and a huge infrastructure that enables them to sell us additional products and services.
“We are witnessing a once-in-a-century shift from a product era to the dawn of a global Subscription Economy. The way consumers like to consume goods and services has changed dramatically. Today, consumers are looking for personalised outcomes and experiences,” said Zuora CEO Tien Tzuo.
“As consumers, we want immediate, convenient and flexible access to personalised services, which we only get through entering into ongoing, mutually beneficial relationships with brands. This has led to the rise of a new generation of businesses catering to this trend – the automatic and recurring delivery of razors before you run out, software updates for your connected car or countless albums or films at your fingertips whenever you want them. This transformation will ultimately affect every aspect of our personal and professional lives.”
The full results of the A Nation Subscribed: 2016 State of the UK Subscription Economy report are available here.
