‘Streaming divide’ revealed between rural and urban areas

The data, commissioned by ISP partner for TV and Wi-Fi mesh services Netgem, found that 79% of rural respondents were unsure or were considering switching to an ultrafast broadband package that included streaming services as part of the bundle. Only 21% would not consider it despite the fact that only 25% of these same respondents currently had a TV and broadband package.

Such findings were not limited to rural areas, as 57% of 18–24-year-olds, 62% of full-time students and 59% of households with one or two children outlined that they would be more likely to switch to a broadband provider that could include these services as part of the overall package. The conclusion said Netgem was that here is that faster broadband speeds and a mix of free and premium streaming services as part of this package were an appealing option for households, particularly in rural areas.

The data also revealed a ‘streaming divide’ between certain parts of the UK, with perhaps the biggest difference between Scotland and London. Scottish respondents were twice as likely to have no streaming subscriptions compared to Londoners. Netgem noted that as good, reliable broadband is needed to watch most streaming services, it was perhaps unsurprising that there is such a contrast between Scotland and London, given that average broadband speeds in London are over twice as fast as Scotland, and some parts of Scotland have up to 24% of areas with broadband speeds of under 15 Mbps, compared with just 0.82% of London.

Looking as to what pointers the research has for the industry Netgem said there was a clear opportunity for independent broadband providers, altnets, which are predicted to hit around 1.1 million households by the end of 2021 and which could offer greater choice to customers, including bundled streaming services. It added that there was undoubtedly a great opportunity to grab a greater portion of the market share for any broadband providers which could offer streaming services as part of their package to customers.

Netgem also suggested that the opportunity extended to streaming services and the partners who could capitalise on the market, as the YouGov research showed a discrepancy between the number of subscribers and the demand for streaming services with their broadband.

“[The] findings show that there is a clear link between slow average broadband speeds and lack of uptake in streaming services,” noted Netgem UK CCO Shan Eisenberg. “The research shows that the demand for ultrafast broadband and streaming services is there in rural areas, so there is a huge opportunity for the altnets to fill this gap in the market and bring consumers in underserved areas of the countries the fibre and TV streaming bundles that are so successful everywhere in the country.” Rapid TV News