Amazon and Netflix are trouncing broadcasters in the U.K. streaming market

Netflix series The Crown
Amazon Prime Video and Netflix, home of originals like "The Crown," are snatching the lion's share of streaming video revenues in the U.K. (Netflix)

Amazon Prime Video and Netflix’s investments toward growing international subscriber bases are paying off, at least in the U.K., where the two services are trouncing their broadcaster competition.

According to The Guardian, Amazon Prime Video and Netflix took in a combined £1.1 billion (nearly $1.39 billion) in 2018. Netflix accounted for £693 million ($874 million) in revenues from 10 million U.K. subscribers, and Amazon accounted for £400 million ($504 million) from an estimated 7.7 million Prime Video subscribers.

As the report pointed out, four streaming services from U.K. broadcasters ITV, Channel 4, Channel 5 and Sky – made about £530 million ($668 million) 2018.

But, Amazon and Netflix’s big revenues in the U.K. don’t mean that the services have the most subscribers. The BBC’s free iPlayer service is tops in the country with an estimated 13.4 million homes.

RELATED: Amazon Prime launches on Virgin Media set-tops in U.K. ahead of Premier League streams

For Netflix, international distribution has become the biggest part of its business. The company ended its most recent quarter by adding another 7.86 million subscribers, and bringing its total subscriber base outside the U.S. to 88.63 million paid memberships. The company added nearly 23 million international subscribers in 2018. The company also expanded its international streaming revenues to more than $2.3 billion.

Those revenue figures are likely poised to grow even more in 2019 now that Netflix is rolling out price increases in the U.K. The Guardian reported that Netflix is hiking prices in the country by 20%, upping the cost of a standard plan to £8.99 per month and premium to £11.99 per month. The company is maintaining its £5.99 price for the basic plan.

Suggested Articles

Alan Wolk, lead analyst and co-founder at TV[R]EV, takes on YouTube's reported service bundling plans and Roku's strong fourth quarter.

Netflix quietly revealed last week that it has begun streaming AV1 encoded content through its app for Android mobile devices. It’s a big deal.

Roku rounded out 2019 nearly 10 million active accounts ahead of where it ended 2018 as the company continues its momentum in the streaming space.