Netflix’s earnings last month may have been a disappointment, but the online video giant will be cheered by major research coming out of the UK on Thursday.
Media regulator Ofcom’s Communications Market Report claimed that Netflix is the “driving force” behind Brits watching more content on subscription video on demand services.
To compile the chart below, Ofcom asked 1,512 UK adults to complete a seven-day media diary earlier this year to reveal the proportion of time they spent consuming content across different platforms.
Demand for Netflix has rocketed 10 percentage points to 23% since 2014, meaning it comfortably outstripped its rivals. Amazon Prime Instant Video was its closest competitor, with a comparatively meagre weekly reach of 7%.
Ofcom also quoted data from research firm Kantar Media, which showed that in the second half of 2015, 16% of Brits claimed to have used Netflix in the past year.
This put it level, or ahead of, free video on demand services from the major UK broadcasters, including ITV’s ITV Hub and Channel 5’s My5. Indeed, the chart below shows how Netflix has increased in popularity, while rivals have declined.
The rise of Netflix has contributed to the weekly reach of video on demand services increasing eight percentage points to 26% over the past two years. As this graph shows, demand has ballooned among millennials, who are the biggest consumers of online video content.
Netflix also has the rights to the most popular TV show among subscription video on demand users, according to Ofcom data provided by research firm GfK.
This chart shows how AMC drama “Breaking Bad” racked up 33,142 hours of consumption on Netflix in the final three months of 2015, with its original drama “Orange is the New Black” at a close second. Amazon’s best effort was “Sons of Anarchy,” which originally aired on US cable network FX.
The popularity of acquired TV shows is the main reason why people signed up for Netflix and Amazon, as the graph below shows.
This is interesting given the level of investment these companies are ploughing into original shows, such as “House of Cards” and “Ripper Street.” In fact, securing access to these originals was only the the third-biggest driver for people taking out a subscription.
Ofcom’s Communications Market Report supplements data released by the media regulator last month, which showed that millennials are turning off TV to watch Netflix.
It showed that TV viewing among 16- to 24-year-olds has dropped 14 percentage points in two years to 36%. By contrast, viewing of subscription video on demand services, including Netflix and Amazon Prime Instant Video, increased by the same proportion to a fifth of all content consumed.