With European adoption of subscription streaming video driving subscriber growth among American platforms such as Disney+, Netflix and Amazon Prime Video, new data from Futuresource Consulting suggests the aforementioned services have added more than six million combined subs in the United Kingdom through June 30 — including four million alone for Disney+.
“Disney’s timing was impeccable with Disney+ launching on the first day [March 24] of full lockdown,” analyst David Sidebottom said in a statement. “Our forecasts indicate that the service will account for a significant proportion of the growth in the U.K. SVOD sector in 2020.”
Despite the sub growth, 2020 continues to be a volatile year for the British video and TV entertainment industry, with a lockdown boom that has played to the strengths of content hungry consumers, offset by challenges around consumer retention in the second half of the year, particularly for those reliant on monthly subscriptions, as the U.K. begins to open for business again.
London-based Futuresource projects 2021 will see a 10% increase in video/TV entertainment consumer spending, topping £10 billion total spend on video for the first time driven by increased consumer choice and continued investment in the industry.
“A strong slate will help the box office recover and in turn provide a major boost to the home video sector,” Sidebottom said.
Beyond content delivery, the U.K. continues to make its mark as a global content production powerhouse. Major investments in studio facilities planned in and rolling out from 2020 to 2023 will further enhance the region’s reputation and feed digital services with a growing range of quality content.
Futuresource forecasts the overall video and TV entertainment sector will reach £11.3 billion in consumer spend in 2024. This will help drive total sector revenue and U.K. exports, which can be reinvested into the industry.
“The polarization of fortunes in 2020 means overall video and entertainment revenues are set to fall this year, but there is massive potential waiting around the corner,” Sidebottom said.