Whilst the video streaming market in the UK held a value of just £28 million in 2009, growth has been dramatic and new research from Mintel estimates the market reached £437 million in 2014, up 56% from £281 million in 2013. By 2019, Mintel expects revenue from video streaming subscriptions to total £1,171 million, which would see this sector account for 38% of the total UK video market (up from 20% in 2014).

Although the market for music streaming subscriptions is worth little more than a third of the size of its video equivalent, the industry has also recorded substantial growth in sales value in recent years. The value of music streaming subscriptions has grown by 65% to reach an estimated £175 million in 2014 and over the next five years Mintel forecasts the market could almost treble in size, with subscription revenue expected to reach £461 million by 2019.

"As more consumers acquire connected devices such as smart TVs, which allow them to stream films and TV programmes directly, more people will pick digital sources over physical formats such as DVDs and Blu-rays," says Paul Davies, Senior Leisure and Technology Analyst. Mintel's research finds that half (50%) of consumers have streamed music in the last 12 months.

However only a quarter (24%) of music streamers have paid for access, with most opting for free services that use advertising as a means of revenue.

Moreover, whilst over two-thirds (69%) of Brits have streamed online videos in the last 12 months, a third (32%) of this group have paid for a video streaming service. Overall, usage of online streaming services again peaks at younger Brits, with a vast 91% of 16-24s accessing a video streaming service in the past 12 months.

Furthermore, it seems there is additional opportunity in the future for streaming services to combine media as Mintel's research also shows 41% of online music subscribers and 33% of online video subscribers would be interested in a subscription package that included a bundle of different media services.

"When deciding what to watch, Mintel's research reveals that UK consumers like to explore content libraries themselves in order to find new music or video online, with 50% of users saying that they would rather do this than receive recommendations from providers," Davies continues. As many as one in four (39%) consumers who have streamed music or video say they often find that content recommendations from services do not fit their interests.

Story filed 24.03.15