Streaming service subscribers to surpass pay-TV subscribers in the UK
The cord-cutting trend is picking up steam all over the world. Netflix (NFLX) is slated to overtake Sky satellite TV subscribers in the UK by the end of the year, according to a Guardian report. The report also mentions that the overall subscribers for streaming services in the UK such as Netflix, Amazon (AMZN) Prime, and Sky Now have now surpassed the pay-TV subscribers of Sky, BT Group, and Virgin Media.
Netflix doesn’t just provide original content for UK subscribers, but it also partners with UK broadcasters. Netflix partnered with UK broadcaster BBC for the production of Dracula. Amazon also partnered with BBC Studios to produce programs such as King Lear and Vanity Fair.
The cord-cutting trend is prevalent in the US also. Pay-TV providers such as Comcast (CMCSA), Dish Network (DISH), and AT&T (T) have continued to lose subscribers. In the last quarter, these providers lost 106,000, 341,000, and 297,000 pay-TV subscribers, respectively.
To counter the threat of online streaming companies like Netflix, pay-TV providers are coming up with their own video streaming services. Walt Disney Company (DIS) launched its first direct-to-consumer service, ESPN+, this year. AT&T is also focusing on its DIRECTV NOW video streaming service to gain subscribers.