The recent Ofcom study which shows a demographic shift to online content among the youth threatens an imminent paradigm shift in linear TV.

  1. UK broadcasters face advertising tipping point, new study finds

A report has forecast an “inflection point” for UK TV where the decline in viewing that is already well established among 16- to 34-year-olds will spread to other key demographics, ultimately threatening TV’s greatest selling point of mass-market reach for advertisers.

It says that by 2022 the reduction in TV viewing will cut the amount of ads viewed by 45% among 16- to 34-year-olds, by as much as 30% in the demographic known as “housewives and kids” and by 15% among ABC1 adults (consumers from the three highest socio-economic brackets).

This will make it more costly for campaigns to hit the same audience numbers, meaning advertisers are facing effective ad price rises of 90%, 50% and 20% for the three demographics respectively over the period.

 

  1. VOD subscriptions in MENA will more than double by 2024

The company predicts there will be 26.51 million SVOD subscriptions by 2024, up from 11.31 million at the end of 2018, where an SVOD subscriber can have more than one subscription.

“We forecast 11.87 million SVOD subscriptions in the 13 Arab-speaking countries covered in this report by 2024 – nearly triple from the 4.13 million recorded at end-2018,” said Simon Murray, principal analyst at Digital TV Research.

Turkey is tipped to remain the regional leader with 11.52 million subscribers by 2024, while Netflix is expected to remain the largest MENA SVOD platform by 2024 with 7.71 million paying subscribers – up from 3.11 million in 2018.

In the 13 Arabic countries, the top eight platforms – Netflix, Amazon Prime Video, Icflix, Starz Play, Iflix, Wavo, beIN Connect and Shahid Plus – are due to retain 95% of SVOD subscribers.

 

  1. 86% say pay-TV operators should enable access to SVoD

A key issue today is not just the value of the second window, but how willing broadcasters will be to license shows that have been on SVoD.  With many more shows coming back to the market after an SVoD first window, 2019 will be an interesting year. Some 55 per cent feel that broadcasters will start to offer more shows in a second window after SVoD.

Over half of respondents expect drama production levels to increase this year (up 43 per cent from last year). In addition to respondents expecting further growth, fewer people believe production has peaked.

For the second year running the integration of SVoD services remains the most important pay-TV operator feature set; 86 per cent of respondents believe that pay-TV operators should be enabling their consumers to access SVoD services via bundling and/or integration. In 2018 Sky in the UK and Germany bundled Netflix with their Box Sets, effectively offering Netflix for a reduced fee. Davison says “Operators who have been strong in building their own channels and services are now willing to fully embrace the importance of Netflix to their customers, and the belief that they are not competing for subscribers outweighs any issues over their competition for content and customer revenue”.

 

  1. Why children spend time online

Children in the UK (aged 5 to 15)[1] now spend around 20 minutes more online, in a typical day, than they do in front of a TV set – just over two hours online, and a little under two hours watching TV.

YouTube remains children’s primary online destination, with 80% having used it. Nearly half (49%) of children, and a third (32%) of pre-schoolers aged 3-4, now watch subscription on-demand services such as Netflix, Amazon Prime Video and Now TV.

Among those who watch both YouTube and TV programmes on a TV set, nearly half of ‘tweens’ aged 8-11 and older children aged 12-15 (49%) prefer watching content on YouTube. However, more than a third get the same enjoyment from both viewing experiences.

 

  1. Only 12% committed to cable

Just 12 per cent of Americans remain committed to their cable service vs cutting the cord according to a survey conducted by consulting firm Waterstone Management Group.

The survey of 5,027 Americans aged 18-69 found that 59 per cent had already cut the cord on cable service, with another 29 per cent currently contemplating doing so. That leaves a “measly” (Waterstone’s term) 12 per cent who planned to stick with their cable packages.

 

  1. Amazon Prime Video may have more than 4.5x as many movies as Netflix, but quantity isn’t everything.

Netflix’s movie library has often been a source of controversy, with critics complaining the streaming service has lost thousands of movies over the years. And while it’s true Netflix has nearly 3,000 fewer movies in its streaming library than it did in 2010 and Amazon Prime Video’s movie library is more than 4.5x bigger, size isn’t the only thing that matters. It’s quality that arguably matters most, so we decided to see which streaming service’s movie library features the most highly rated films.

 

Reach out to discover more about how we help TV turn digital here.