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Streaming subscription services such as Netflix and Amazon Prime Video are the fastest-growing format for home viewing.
In 2016 Britons will spend more on online video than DVDs for the first time ever, according to new findings from Strategy Analytics.
That means consumers in the UK are increasingly relying on video streaming subscriptions and film/TV downloads than on buying and renting DVDs.
The research company said consumers will spend £1.31 billion on streaming and downloading in 2016, which is 23.7% more than 2015. In contrast, spending on DVDs (including Blu-ray) is forecast to decline by 16.3% to £956 million, falling below the £1 billion mark for the first time since 1994.
As a result, online formats will account for 58% of home video spend, compared to 42% for DVDs.
Streaming subscription services such as Netflix and Amazon Prime Video are the fastest-growing format for home viewing, rising 36% to £742 million – or £1 in every £3 spent on home video.
Strategy Analytics said there are around 4.6 million Netflix households in Britain and 2.5 million with Amazon Prime. Around 20% of households that subscribe to a video streaming service subscribe to at least two. Video streaming subscriptions will be the dominant format from 2017 onwards and will account for over half of consumer home video spend by the end of 2021, the company commented.
Michael Goodman, Strategy Analytics’ digital media director, said DVDs represented 86% of consumer spend on home video just five years ago.
“In five years it will be less than 14%, with DVD/Blu-ray rental virtually extinct,” said Goodman. “Although many people will always prefer a physical disc, retailers will have to decide whether it’s even viable to offer that format in five years’ time.”
