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Video - DVDs, Downloads, On-demand and Streaming

Published By :

Mintel

Published Date : Apr 2017

Category :

Media

No. of Pages : N/A

The growth of the streaming segment has balanced out declining physical video sales, maintaining equilibrium in the UK video market. The rapid growth of the streaming segment has put pressure on broadcast TV providers to ‘Netflixify’ their offering and provide on-demand content across a range of devices. Growth in streaming subscription shows no signs of disappearing in the near future, with original content and tiered subscriptions offering more opportunities for growth going forward.

Table of Content

OVERVIEW
What you need to know
Products covered in this Report

EXECUTIVE SUMMARY
The market
Growth of digital formats maintains equilibrium in the video market
Figure 1: Value of the UK video market, 2011-16
Video market to grow on the back of strong streaming and on-demand segments
Figure 2: Forecast for the value of the UK video market, 2011-21
Streaming to become the largest single segment in the video market
Figure 3: Forecast for the value of the streaming subscriptions segment, 2011-21
Growth in on-demand segment to continue
Figure 4: Forecast for the value of the on-demand segment, 2011-21
Physical ownership to decline further as the segment fails to match the value proposition of streaming services
Figure 5: Forecast for the value of the physical ownership segment, 2011-21
Growth in digital ownership will not balance out declines in physical ownership
Figure 6: Forecast for the value of the digital ownership segment, 2011-21
Binge-watching culture pushes broadcast TV providers to ‘Netflixify’
Streaming services’ original content meets mainstream film and TV
Device usage pushes viewers towards connected entertainment
Younger viewers turn to ‘alternative’ video media
Companies and brands
Netflix’ library becomes available offline
Virgin Media and NOW TV (Sky) launch set-top boxes aimed at integrating streamed content
Amazon takes first steps towards tiered video subscriptions
Google Play starts selling movies in 4K
Niche streaming services find success by offering more than content
Film studios and streaming providers dominate advertising expenditure
Streaming providers focus marketing on digital channels
The consumer
Broadcast TV is first choice for frequent viewing
Figure 7: Film and TV show viewing habits, December 2016
Physical video media more likely to be viewed less than once per week
Netflix reaches half of all video streaming users
Figure 8: Usage of streaming and on-demand services, December 2016
Four in 10 use three or more video streaming services
Figure 9: Repertoire of streaming and on-demand services used, December 2016
TV screens are the viewing device of choice
Figure 10: Devices used to watch films and TV shows, December 2016
Device-agnostic approach to content distribution is key for young viewers
Figure 11: Repertoire of devices used to watch films and TV shows, December 2016
Exclusive content seen as feature most worth paying for
Figure 12: Features of video streaming services seen as worth paying more for, December 2016
Three in 10 buy DVDs or Blu-rays
Figure 13: Film and TV show ownership, December 2016
DVD collectors are more invested in video across all channels
Figure 14: Film and TV show ownership, by film and TV viewing habits, December 2016
Video streaming services take on ownership and pay-TV
Figure 15: Attitudes towards video media and services, December 2016
Streaming services need to facilitate content selection
What we think

ISSUES AND INSIGHTS
Where next for streaming providers after original content?
The facts
The implications
DVD and Blu-ray to go the way of vinyl?
The facts
The implications

THE MARKET – WHAT YOU NEED TO KNOW
Growth of digital formats maintains equilibrium in the video market
Video market to grow on the back of strong streaming and on-demand segments
Binge-watching culture pushes broadcast TV providers to ‘Netflixify’
Streaming services’ original content meets mainstream film and TV
Device usage pushes viewers towards connected entertainment
Younger viewers turn to ‘alternative’ video media

MARKET SIZE AND FORECAST
Growth of digital formats maintains equilibrium in the video market
Figure 16: Value of the UK video market, 2011-16
Figure 17: % of the UK video market represented by segments, 2011-16
Video market to grow on the back of strong streaming and on-demand segments
Figure 18: Forecast for the value of the UK video market, 2011-21
Forecast methodology

MARKET SEGMENTATION
Streaming to become the largest single segment in the video market
Figure 19: Forecast for the value of the streaming subscriptions segment, 2011-21
Growth in on-demand segment to continue
Figure 20: Forecast for the value of the on-demand segment, 2011-21
Physical ownership to decline further as the segment fails to match the value proposition of streaming services
Figure 21: Forecast for the value of the physical ownership segment, 2011-21
Growth in digital ownership will not balance out declines in physical ownership
Figure 22: Forecast for the value of the digital ownership segment, 2011-21

MARKET DRIVERS
Binge-watching culture pushes broadcast TV providers to ‘Netflixify’
Streaming services’ original content meets mainstream film and TV
Device usage pushes viewers towards connected entertainment
Younger viewers turn to ‘alternative’ video media

COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Netflix’ library becomes available offline
Virgin Media and NOW TV (Sky) launch set-top boxes aimed at integrating streamed content
Amazon takes first steps towards tiered video subscriptions
Google Play starts selling movies in 4K
Niche streaming services find success by offering more than content
Film studios and streaming providers dominate advertising expenditure
Streaming providers focus marketing on digital channels

LAUNCH ACTIVITY AND INNOVATION
Netflix’ library becomes available offline
Virgin Media and NOW TV (Sky) launch set-top boxes aimed at integrating streamed content
Amazon takes first steps towards tiered video subscriptions
Google Play starts selling movies in 4K
Niche streaming services find success by offering more than content

ADVERTISING AND MARKETING ACTIVITY
Film studios and streaming providers dominate advertising expenditure
Figure 23: Total above-the-line, online display and direct mail advertising expenditure on video, by advertisers, 01/01/2016-01/01/2017
Streaming providers focus marketing on digital channels
Figure 24: Total above-the-line, online display and direct mail advertising expenditure on video, by media type, 01/01/2016-01/01/2017
Nielsen Ad Intel coverage

BRAND RESEARCH
Brand map
Figure 25: Attitudes towards and usage of selected brands, February 2017
Key brand metrics
Figure 26: Key metrics for selected brands, February 2017
Brand attitudes: Netflix associated with quality, while Amazon inspires trust and loyalty
Figure 27: Attitudes, by brand, February 2017
Brand personality: Streaming services generally seen as fun and vibrant, but TalkTalk TV Store does not share this positive image
Figure 28: Brand personality – Macro image, February 2017
Flexibility is NOW TV’s most notable feature, while Netflix is seen as cool
Figure 29: Brand personality – Micro image, February 2017
Brand analysis
Netflix enjoys a positive image across demographics
Figure 30: User profile of Netflix, February 2017
NOW TV has a strong association with flexibility, despite lower usage than Netflix and Amazon
Figure 31: User profile of NOW TV, February 2017
Amazon has a broadly positive image, but is more likely to be perceived as expensive than its competitors
Figure 32: User profile of Amazon Instant Video, February 2017
TalkTalk TV Store sits in the shadow of its competitors
Figure 33: User profile of TalkTalk TV Store, February 2017

THE CONSUMER – WHAT YOU NEED TO KNOW
Broadcast TV is first choice for frequent viewing
Physical video media more likely to be viewed less than once per week
Netflix reaches half of all video streaming users
Four in 10 use three or more video streaming services
TV screens are the viewing device of choice
Exclusive content seen as feature most worth paying for
Tiered subscriptions are nearly as attractive as exclusive content
Three in 10 buy DVDs or Blu-rays
DVD collectors are more invested in video across all channels
Video streaming services take on ownership and pay-TV
Streaming services need to facilitate content selection

FILM AND TV SHOW VIEWING HABITS
Broadcast TV is first choice for frequent viewing
Physical video media more likely to be viewed less than once per week
Figure 34: Film and TV show viewing habits, December 2016
Figure 35: Film and TV show viewing habits, December 2016

STREAMING, ON-DEMAND AND PAY-TV USAGE
Netflix reaches half of all video streaming users
Figure 36: Usage of streaming and on-demand services, December 2016
Four in 10 use three or more video streaming services
Figure 37: Repertoire of streaming and on-demand services used, December 2016
All 4’s hybrid identity promotes frequent usage
Figure 38: Subscription streaming and on-demand services used, by film and TV show viewing habits, December 2016
Pay-TV usage not stratified by age
Figure 39: Usage of pay-TV services, December 2016

VIEWING DEVICES
TV screens are the viewing device of choice
Opportunities for streaming subscription services with students
Figure 40: Devices used to watch films and TV shows, December 2016
Figure 41: Devices used to watch films and TV shows, December 2016
Device-agnostic approach to content distribution is key for young viewers
Figure 42: Repertoire of devices used to watch films and TV shows, December 2016

FEATURES OF VIDEO STREAMING SERVICES
Exclusive content seen as feature most worth paying for
4K content makes Amazon marginally more attractive to male viewers
Tiered subscriptions are nearly as attractive as exclusive content
Figure 43: Features of video streaming services seen as worth paying more for, December 2016

FILM AND TV SHOW OWNERSHIP
Three in 10 buy DVDs or Blu-rays
Figure 44: Film and TV show ownership, December 2016
DVD collectors are more invested in video across all channels
Figure 45: Film and TV show ownership, by film and TV viewing habits, December 2016

ATTITUDES TOWARDS VIDEO MEDIA AND SERVICES
Video streaming services take on ownership and pay-TV
Streaming services need to facilitate content selection
Consumers do not want to get rid of their DVD collections in favour of digital video
Figure 46: Attitudes towards video media and services, December 2016

APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology

APPENDIX – MARKET SIZE AND FORECAST
Market forecast
Figure 47: Forecast for the value of the UK video market, 2016-21
Streaming subscriptions forecast
Figure 48: Forecast for the value of the streaming subscriptions segment, 2016-21
On-demand forecast
Figure 49: Forecast for the value of the on-demand segment, 2016-21
Physical ownership forecast
Figure 50: Forecast for the value of the physical ownership segment, 2016-21
Digital ownership forecast
Figure 51: Forecast for the value of the digital ownership segment, 2016-21
Forecast Methodology

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