New Ofcom data shows video streaming services now have more subscribers than traditional pay TV in the UK.
Media regulator Ofcom has said that British TV will need to change the way it operates if it wants to compete with video streaming services such as Netflix.
New data from Ofcom has shown that services like Netflix and Amazon Prime now have more subscribers than traditional pay TV services in the UK.
According to BBC News, nearly 40% of UK households now subscribe to Netflix, Amazon Prime or Now TV. The 15.4 million subscriptions have now passed the 15.1 million who pay for Sky, BT, Virgin and other satellite/cable providers.
Ofcom has also revealed that spending on TV by the BBC, ITV, Channel 4 and Channel 5 has dropped by nearly £1 billion over the last 20 years. The decrease from £3.4 billion to £2.5 billion represents a 28% drop in spending.
Viewing among five to 15s was down 15% in 2017 and for 16-24s it was down 12%. However, 16-34s now watch around an hour a day of material on YouTube on phones, tablets or computers.
Ofcom’s chief executive, Sharon White, said that it “would be great to see a British Netflix”.
“We’d love to see broadcasters such as the BBC work collaboratively with ITV, Channel 4 and Channel 5 so that they have got that scale to compete globally, making shows together, co-producing great shows that all of us can watch,” Sharon commented on BBC News.
Talks between BBC, ITV and Channel 4 have already taken place, looking at the prospect of creating a joint streaming service to compete with Netflix and Amazon, said the BBC.