Market sizing

This is a great question! The way I’d approach it is:

1. How many people in the UK? 70m
2. I’d assume that each household has one streaming subscription per platform. How many people in a house? 3
3. How many households? 70m/3 = 23.3m. I’d round to 25m
4. What proportion watch TV through streaming? I’d break down the households into age categories and assume that people live to 80 on average and the population is evenly distributed. I’d also make assumptions on what proportion streams. So:

• 0-20 you live with your parents. So actually in terms of household. So actually to break households by age I’d assume 1/6 of households account for each 10 years of age.   
• 20-30. You live with friends. This is 10 years so I’d assume 1/6 of households are only people aged 20-30. As they are high streamers I’d assume 90% stream. So the number of streaming households is 25m*1/6*90% = 3.75m
• 30-50. You live with your kids. This is 2/6 of households. I’d assume a slightly lower streaming rate - let’s say 80%. So the number of streaming households is 25m*2/6*80% = 6m
• 50-80. You live without kids. This is 3/6 households and I’d assume a slightly lower steaming rate - let’s say 70%. So the number of streaming households is 25m*3/6*70% = 8.75m

1. So in total we have 8.75 + 6 + 3.75 = 18.5m streaming households. 
2. Assuming a subscription is £10 a month, that’s £120 a year per household, so the total size of the market is £120 * 18.5m = £2.22b

It is a very simple question. Try to estimate it on your own and then we discuss it together.

Better way to learn is to please post your solution and us coaches can comment :)