By Daniel Hunter

The UK now spends almost half a billion pounds on video streaming, according to a report by market research firm Mintel.

The research found that sales from video streaming grew by 56% in 2014 to £437m. And spending is set to break the £500 million mark this year.

Streaming services like Netflix have created a “dramatic” growth in an industry worth just £28m 10 years ago. But Mintel has forecast spending on video streaming in the UK to surpass £1 billion in 2019.

The study found that two third of the video market's revenue still comes from physical DVDs or Blu-ray discs, but physical video income fell 6.5% in 2013, compared to a 45% in video-on-demand revenue and a 77% increase in subscription services income.

Netflix dominates subscription video streaming in the UK with a 20% share of the overall streaming market, in terms of viewers not revenue. It's more than double its nearest rival, Amazon Instant Video which has a 9% share.

But the likes of Netflix and Amazon are still some way off YouTube and catch-up services like BBC iPlayer, ITV Player and 4OD which were all watched more than Netflix last year.