Netflix is predicted to reach 10 million subscribers in the UK by the end of 2018, according to research by MTM.
The company says 1.1 million more subscribers are expected to sign up for the SVoD platform by the end of the year.
It says the integration of Netflix on Sky Q could support further growth for the streamer, with 200,000 current Sky Q users looking to subscribe to Netflix by the end of 2018.
MTM’s ScreenThink report, based on a survey of more than 3,000 UK online users aged 16+, has found that 25 per cent of UK internet users overall – and 39 per cent of 16-24-year-olds – say that video offerings such as Netflix and YouTube are the first services they turn to when looking for TV or video content.
The greater availability of low-cost paid-for video services such as Netflix and Amazon’s Prime Video is also impacting consumer perceptions of value for money: 54 per cent of UK pay-TV subscribers now believe that their TV service is overpriced, and one in four are thinking about cancelling their subscription.
“The most recent ScreenThink study provides a fascinating snapshot of a market in transition, demonstrating the significant impact of Netflix and other OTT video services in the UK market,” said Jon Watts, managing partner at MTM. “The UK’s broadcasters and pay-TV providers remain in a strong position and have developed worldclass OTT products – the BBC iPlayer, All4, the ITV Hub, My5 and Now TV – but we’re clearly seeing signs of significant shifts in consumer attitudes and perceptions of quality, in terms of content, value for money and innovation.”