OTT and Operator-Owned Multiscreen Services Penetration in UK to Exceed 75% and 52% Households Respectively by 2017, Says ABI

  OTT and Operator-Owned Multiscreen Services Penetration in UK to Exceed 75%
  and 52% Households Respectively by 2017, Says ABI Research

Business Wire

LONDON -- November 19, 2012

The United Kingdom leads Europe in the adoption of both standalone
over-the-top (OTT) services, as well as operator-owned multiscreen (TV
Everywhere) services. Many UK consumers fit the multi-device profile, with
more than 10% of the population in the UK already boasting an average of four
connected devices. SKY, with its growing Pay TV subscribers, (9.5 million) and
Virgin Media (3.7 million) continue to invest heavily in their multi-screen
offerings. Today over 50% of broadband users are using pure OTT services
(fueled in part by the BBC iPlayer) while Pay TV operator-owned multiscreen
services capture only about 17.5% of Pay TV households. “While multiscreen
services will not catch up with pure OTT services by 2017, the growth of
multiscreen platforms will be faster than OTT services,” says Sam Rosen,
practice director, ABI Research.

Pure OTT video services in the UK continue to rapidly evolve with an
increasing number of local and international players entering the market.
LOVEFiLM, with 2.5 million subscribers, remains market leader in 2012, but
faces stiff competition with Netflix gaining 1 million subscribers within 8
months of its entry into the market. As a result of increasing competition and
choice in pure OTT video services, revenues are expected to surpass $500
million by the end of 2012. “In pure OTT video services, content is the king,
but in the short term operators that fail to differentiate purely on content
may be able to focus on user experience to woo consumers. Netflix’s content
offerings in Europe lack depth; however device penetration and good user
interface, makes an enticing offering for consumers,” according to Adarsh
Krishnan, senior analyst at ABI Research.

Traditional Pay TV operators are also doing a better job of capturing
customers with their multiscreen solutions; BSkyB’s Sky Go already has
respectable penetration with nearly 26% of their total customer base using
multiscreen services. Virgin, with their TiVO app, is just entering the
multiscreen game. Meanwhile, the lines are starting to blur with the launch
Hybrid STB YouView by telcos and market leader SKY's foray into OTT service
(Now TV).

These findings are part of ABI Research’sOTT and Multi-screen
Research Service which measures consumer’s transition to the over-the-top
(OTT) and multiscreen experiences, operator’s growth, and strategies for
players within the markets.

ABI Research provides in-depth analysis and quantitative forecasting of trends
in global connectivity and other emerging technologies. From offices in North
America, Europe and Asia, ABI Research’s worldwide team of experts advises
thousands of decision makers through 70+ research and advisory services. Est.
1990. For more information visit, or call +1.516.624.2500.


ABI Research
Christine Gallen, +44-203-326-0142
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