Third of UK broadband homes subscribe to OTT video

A third of UK broadband households subscribed to an over-the-top (OTT) video service as of the third quarter of 2015, according to Parks Associates.

The research firm’s Connected Consumer in Europe study claims that nearly 20% of UK broadband households have recently used a Netflix-style service, despite the availability of free OTT catch-up options.

However, Parks claims that “overall OTT video usage in the UK favours broadcasters” with the BBC’s iPlayer, ITV Player, All 4 and Demand5 among the most popular OTT video sources in the UK.

“New OTT video market entrants, especially those with paid services, will have to provide unique value in order to make substantial gains. However, the demand for interesting content is strong enough that there are market opportunities for new OTT video players,” said Parks Associates director of research, Brett Sappington.

The research claims that just 15% of pay TV households in the UK subscribe to premium movie channels, though 32% of pay TV homes subscribe to a premium sports package.

Some 54% of pay TV subscribers in the UK are with Sky, according to the research, while Virgin Media and Sky combined account for 80% of the market.