According to the data from Ofcom, growing popularity of video streaming services like Netflix and Amazon Prime have now more subscribers than traditional British Pay TV in the UK.
The media regulator in the UK said, British TV has to be more innovative in approach and has to change its operations if it has to compete with the internet streaming services.
“We would love to see syndicates in the industry, one collaborating with other in order to provide better services to the users, like BBC collaborate with ITV, Channel 4 and 5 so they got the scale to compete globally, this way they can produce great shows everyone watches”, said Ofcom CEO, Sharon White. And I think it would be great to see British Netflix she added.
BBC, Channel 4 and ITV are mulling and finding the way to work together so they can compete with giants like Amazon and Netflix. BBC has also claimed rising costs in its annual report, the costs associated with producing drama and comedy shows due to the financial power of its internet rivals.
According to the report, around 40% of UK households are the subscribers of Netflix, Amazon Prime or Now TV. Internet TV subscribers have now surpassed UKs traditional Sky, BT, and Virgin subscriptions, the Internet subscriptions account for 15.4 million subscribers while UK TV is sitting on 15.1 million.
Instead of an increase in spending, UK customers have withdrawn their spending on British TV, the amount has just gone down by nearly £1 billion during the last 20 years. There was a 28% drop in spending on British TV from £3.4 billion to £2.5 billion.
This becomes an alarming situation for British Broadcasters because the traditional Pay TV services are on a serious decline with the rise of Internet TV/Streaming services.
However, Sky and other equivalent services have made much more money than their rivals, the revenues of £6.4 billion Vs £895 million for video on demand services. The report also provides insights which show teenager are pulling out from traditional TV very fast. The median average age of viewers for BBC One, BBC Two and ITV is now over 60.