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UK Availability of Film and TV Titles in the Digital Age

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UK Availability of Film and TV Titles in the Digital Age DECEMBER 2014 UK Availability of Film and TV Titles in the Digital Age A report on the UK availability of the most popular and critically acclaimed film and TV titles on legal digital streaming and download services kpmg.com/uk/media A report on the UK availability of the most popular and critically acclaimed film and TV titles on legal digital streaming and download services This report was prepared by KPMG LLP, a UK limited liability partnership, at the request of NBCUniversal. KPMG LLP’s role was limited to providing this objective study. KPMG LLP cannot and does not undertake any role that would constitute public policy advocacy or lobbying and offers no viewpoint on public policy matters related to digital content and online video. © 2014 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. CONTENTS EXECUTIVE SUMMARY 01 INTRODUCTION 03 ONLINE VIDEO ON DEMAND 05 Availability of Most Popular 07 and Critically Acclaimed Films Availability of UK Qualifying 11 and UK Independent Films Availability of most Popular and 12 Critically Acclaimed TV Titles Availability of TV Titles of UK Origin 14 METHODOLOGY 15 GLOSSARY 21 FOOTNOTES 23 © 2014 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 1 01 EXECUTIVE SUMMARY We found that high proportions of popular and critically acclaimed film and TV titles were legally available in a digital format to UK consumers as at the date of this work. This report found that the vast content “on the go” has helped create 73% of the 756 unique films majority of the most popular momentum for online transactions. reviewed were available via online and critically acclaimed film and Online video distributors’ digital video on demand distribution television content is available from offerings are generally accessible on a on at least five of the 27 service legal digital platforms. wide array of connected devices and/ offerings studied. or platforms. The report examines the UK The following is a breakdown of the availability of the most popular and availability of films (%) across at critically acclaimed film and TV titles least five online services in certain on 27 legal digital streaming and FILM TITLES of the sub-samples studied: download services as of December This report found that the most • 89% of the 2012 UK top 100 box 2013. The report’s findings popular and critically acclaimed film office hits demonstrate that the film and and TV titles were widely available • 89% of the 2011 UK top 100 box television industries are reacting to anyone who had access to the office hits to consumer demands in the Internet through dozens of online digital world. • 84% of the UK top 20 box office VOD digital distribution services. hits in each of the years from The transactional VOD market We found that: 2000 to 2010 (electronic-sell-through, or EST, As at December 2013, 86% of the and online rental business • 65% of the 2013 UK top 100 box 756 unique films reviewed were models) is experiencing growth office hits (i.e., released theatrically available via online video on as a result of rising consumer in the year of this study) demand distribution on at least demand. In response, new online • 84% of the UK all time box one of the 27 service offerings video distributors are entering the office hits studied. transactional online VOD market. • 100% of the 2012 UK top 100 box When we turn our attention to the These developments suggest that office hits availability of the most popular and the UK consumer will continue to critically acclaimed film titles by • 98% of the 2011 UK top 100 box have much choice and availability business model, we found that the office hits of video content under both majority were available on the two Subscription Video on Demand • 96% of the UK all time box office hits online transactional models – 86% (SVOD) and transactional online VOD • 94% of the UK top 20 box office were available on EST and 67% (EST and online rental). hits in each of the years from via online rental. A relatively lower proportion of the most popular Furthermore, the proliferation of 2000 to 2010 and critically acclaimed films were connected devices and platforms • 77% of the 2013 UK top 100 box offered under the SVOD model (39%) that bring online content to TV sets office hits (i.e., released theatrically and none was offered under the or enable consumers to view video in the year of this study) advertising-supported VOD model. © 2014 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 2 INDEPENDENT FILMS TV TITLES From our selected total sample Out of a sample of 814 most popular of 972 most popular and critically and critically acclaimed film and TV acclaimed films, 70 were UK titles, around two-thirds (538 titles) qualifying films and 35 were UK were available on at least one online independent films.1 video distribution service at the end of 2013. 64 out of the 70 UK qualifying films This report found that (91%) and 31 out of the 35 UK • 75% of the top 100 UK TV the most popular and independent films (89%) that we programmes in 2011 critically acclaimed film reviewed were available on at least • 73% of the top 100 UK TV and TV titles were widely one online video distribution service programmes in 2012 available to anyone who at the end of 2013. • 73% of the top 100 UK TV had access to the From a sub sample of the all time top programmes in 2013 (the year of internet through dozens 300 box office hits in the UK (inflation this study) of online VOD digital adjusted), 66 were UK co-productions • 71% of pre-2011 modern TV hits distribution services. and 11 were UK films.2 From these • 63% of the BAFTA ‘TV awards we found that 64 of the 66 UK co- winners4 productions (97%) and all (100%) of the 11 UK films were available on at The highest proportion of online least one online video distribution availability of the most popular service at the end of 2013.3 and critically acclaimed TV titles by business model was via the EST platform (61%). With the exception of just two TV titles out of 814, our findings suggest that digital copies of TV shows must be purchased rather than rented, as they are not available for online rental, either as individual episodes or as entire season or series. Of the 649 most popular and critically acclaimed TV titles of UK origin, 61% were available on at least one online video distribution service as at the end of 2013. © 2014 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 3 02 INTRODUCTION The principal objective of this report is to help identify the digital availability of premium audio-visual content – that is, the online availability of the most popular and critically acclaimed films and TV programmes to UK consumers when and where they want it. CHART 1 The video on demand supply chain Audio-Visual Content Rights Owners (Film And Tv Titles) Online Video Distributors Transactional Transactional Subscr iption Ad-Supported (VOD) (EST) (RENTAL) (VOD) Blinkbox, iTunes, Blinkbox, Film 4oD, Clubcard, Crackle, Netflix, Now TV Google Play SkyStore Crunchyroll Notes: These are just a few examples of distributors and not an exhaustive list. A full list is found on Page 19. © 2014 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 4 Online video on demand (Online To determine how widely available VOD) is available to consumers online “popular and critically through multiple and diverse acclaimed” TV titles were in the UK, platforms. It encompasses a number KPMG compiled lists of the most of online video business models popular TV titles (as measured by including transactional (electronic­ Broadcasters Audience Research sell-through and online rental), Board (BARB) TV audience shares) KPMG reviewed the subscription video on demand, and award winning TV shows. We availability of legal long and advertising-supported video identified six sub-samples – a total form, most popular and on demand. KPMG reviewed the of 814 individual TV titles – and then availability of legal long-form, most checked the availability of each of critically acclaimed film popular and critically acclaimed film these TV titles across 25 legal online and TV titles across 27 and TV titles across 27 legal online video distribution services.6 distribution platforms. video distribution services.5 There are two other means by which To determine how widely available long-form legal digital audio-visual online film content was in the UK, content is provided. They are via KPMG compiled lists of the most pay-TV providers and TV channels popular film titles (as measured providing free online catch-up TV, and by box office success), as well as content that is produced exclusively critically acclaimed titles. for, and provided by, digital online distribution services. This report We identified seven sub-samples – a does not cover on-demand audio­ total of 972 individual film titles – and visual content or live streamed TV then checked the availability of each channels offered in or out of the of these film titles across 27 legal home by a pay-TV operator or any online video distribution services.
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