CREATIVE MEDIA EUROPE Audiovisual Content and Online Growth
March 2012
A study for the Association of Commercial Television in Europe
© e‐Media Research Ltd. / Association of Commercial Television in Europe
Acknowledgments e‐Media Institute would like to thank the ACT and all member companies for their contribution to this study. In particular, e‐Media Institute would like to acknowledge the support received by BSkyB, Canal+, Central European Media Enterprises, C More Entertainment, Eurosport, Mediaset, Modern Times Group, Sky Deutschland, RTL Group, TF1, TV4, TVN, Viacom for their precious time during research data collection and their resourceful contributions. Special thanks to the companies who funded the study: BSkyB, Canal+, C More Entertainment, Mediaset, Modern Times Group, RTL Group, Sky Deutschland and Viacom. This study would not have been possbile without their contribution of the crucial information about their cases.
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CREATIVE MEDIA EUROPE Audiovisual Content and Online Growth
March 2012
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About e‐Media Institute e‐Media Institute is an independent organization founded in 1998 and based in London and Milan. e‐Media Institute provides multidisciplinary economic and socio‐economic research‐related services on audiovisual, publishing and new media markets, including qualitative and quantitative analysis of emerging trends, market opportunities and competitive strategies in the communications industry.
About ACT
The Association of Commercial Television in Europe (ACT) is a trade association representing the interests of the commercial broadcasting sector in Europe. Formed in 1989, the ACT has thirty‐three member companies active in 36 European countries. Our members are operating several hundred free‐to‐air and pay‐tv channels and distributing several hundred channels and new services. The ACT members encompass several business models ranging from free‐to‐air television broadcasters and pay‐TV players to digital platform operators and multimedia groups. By offering a wide range of choice and variety to the viewer, commercial broadcasters are a leading source of entertainment and information to millions of European citizens.
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INTRODUCTION
The European television business has never been healthier. European consumers, despite the vast array of competing demands for their leisure time, are watching more television than ever before – on average, 228 minutes per day in 2010, the tenth successive year in which that key indicator had increased. European broadcasting isy toda an €84 billion sector – but, crucially, a sector which reinvests up to 50% of its revenues back into content – whether this is sport, news, entertainment programmes, movie rights or documentaries.
In inviting e‐Media Institute to write this study, we sought to respond to some recent thinking at the European Commission.
The e‐Media Institute research is intended to be read in conjunction with the formal response of the Association of Commercial Television to the European Commission consultation on the “Green Paper on Audiovisual Content” ‐ COM(2011) 427. e‐Media were asked to examine four broad areas
• INVESTMENT IN CONTENT: here, the intention is to put a pan‐European figure on major commercial broadcasters’ annual investment in original content;
• FROM BROADCASTERS TO CROSS‐PLATFORM OPERATORS: we aim to show the extent to which European broadcasters are embracing the Internet as an opportunity, not fearing it as a threat. The once‐ fashionable belief that the Internet would “kill off” television has lost all credibility (rather, one might ask what the Internet would look like without television content?) as broadcasters have enthusiastically launched new online services to grow and complement our existing broadcast businesses. We asked e‐Media Institute to examine a representative sample of European markets to illustrate this point;
• DOES CONTENT CROSS FRONTIERS?: the European Commission, legitimately, wishes to create a single market in digital content. Might the Commission perhaps underestimate the extent to which content already crosses frontiers, maybe because it is distributed via niche channels or because it is the programme format rather than the original‐language programme which is exported?
• ARE “RIGHTS PROBLEMS” BEHIND A [PERCEIVED] LACK OF TRANSFRONTIER DISTRIBUTION?: there is, we hope, common ground between the European Commission, established stakeholders, and new entrants that rightsholders and creators have a right to be paid for the distribution of their work. If we accept that rightsholders must be paid, then clearly acquisition of rights is an issue for any operator, new or established, national or transfrontier. But this does not mean that “rights” are a barrier to new services, and we asked e‐Media Institute to explore and quantify some of the non‐rights factors which will influence a decision on which territories to target.
To conclude, the European Commission is posing a range of very pertinent questions at a crucial time in the development of our sector. It is a common belief in the media business that the television sector is a vehicle for growth and innovation. But at a time when our sector is changing faster than ever, andg bein scrutinised more than ever by EU regulators, we felt the need to illustrate via this report the benefits that the commercial broadcasters’ multi‐billion euros’ annual investment in original content can bring to the European economy.
We believe that we share with the European Commission at least some starting points: most importantly,
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INTRODUCTION
neither we nor the Commission wish to see regulators intervening to shore up specific business models. If consumers wish to see a different form or content, or the same content via a new platform or in a new way, it is our duty to anticipate and serve that demand, rather than it being the role of the EU to protect the established way of doing things. In its “EU Digital Agenda” from 2010 and the more recent “Green Paper on Audiovisual Content” of July 2011, the European Commission has rightly restricted its role to asking questions of broadcasters and other operators. Running through many of these questions is a clear theme: are current arrangements for the production and distribution of audiovisual content optimal in ensuring consumer satisfaction, and in encouraging European players to exploit the full potential of the Internet?
We hope that e‐Media Institute’s work provides evidence for our answer to these questions, and look forward to continuing the debate.
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EXECUTIVE SUMMARY
OVERVIEW
The size, audiences and cultural contribution of the audiovisual industry makes it one of the most important in the European digital economy.
By carrying out an analysis of the value created by this sector and the role of its primary players – commercial broadcasters – this study aims to demonstrate how the content they produce is driving European success in new media and enabling consumers access to it across borders.
This report analyses and shows evidence supporting the following key concepts:
• In Europe, commercial broadcasters are key contributors in terms of growth, jobs, innovation and, most importantly, the creation of audiovisual content – the engine for the development of a culturally‐rich digital society.
• While the great majority of audiovisual consumption still takes place in people’s living rooms, demand for online video has surged over the past few years and the public consumes more video on more devices now than ever before. Commercial broadcasters are embracing this consumer demand by investing significantly in content for online and multi‐device distribution, thereby accounting for a growing proportion of video consumed online, with broadcasters’ own sites among the most popular online video destinations in most European countries.
• Content, in both linear and non‐linear form, circulates widely across borders within the EU on several platforms. Online cross‐border distribution may represent an opportunity for some broadcasters to reach wider audiences beyond their domestic remit, and current copyright licensing frameworks are able to encourage this development in a Single Market, rather than presenting obstacles to online cross‐border distribution.
A VITAL ECONOMIC CONTRIBUTION
The editorial content sector (print, music and radio, audiovisual, Internet and multimedia publishing industries) is one of the key pillars around which the Digital Economy is built.
The content produced by these industries stimulates demand for new media devices, boosting innovation and growth in the consumer electronics and information technology sectors (TV sets, music players, personal computers, videogame consoles, DVD and Blu‐ray Disc players, smartphones, tablets, etc.). Telecommunication networks and services are increasingly fed by the circulation of editorial content, which largely comprises audiovisual content.
• The editorial content sector is worth around €279 billion in the EU, which is equal to 2.3% of GDP.
• The audiovisual industry makes up one of the largest components of the editorial content sector, generating around €95 billion in turnover, equal to 34% of the sector’s total.
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EXECUTIVE SUMMARY
• The audiovisual industry’s contribution to the overall editorial content sector is broken down as follows: 28.6% of the total value is delivered by services distributed via networks (broadcasting, Internet and mobile) while the “offline” audiovisual components (cinema and physical home video) make up the remaining 5.5%.
• Despite periods of significant economic downturn, the audiovisual industry has experienced a period of extraordinary growth and innovation over the past decade, growing by around 56% between 2000 and 2010.
• Broadcasters’ investment in content has also continued to grow. The aggregate expenditure on content of the largest European commercial broadcasting groups, in fifteen EU markets in 2010 was €15.1 billion, evidence of the key role of compelling content in the new media landscape.
FIGURE 1 – EUROPEAN UNION: THE EDITORIAL CONTENT SECTOR – AUDIOVISUAL INDUSTRIES VS OTHER EDITORIAL CONTENT INDUSTRIES (2010) (€ BILLION AND %)
€279 billion TOTAL EDITORIAL CONTENT
(TV, cinema, (Book, newspaper and magazine home video, video over the publishing, directories, radio, music, non‐ Internet and mobile platforms) video Internet / mobile content, videogame titles, off‐line multimedia)
AUDIOVISUAL OTHER EDITORIAL INDUSTRIES CONTENT INDUSTRIES
34% 66%
€ billion 80 15 184
AUDIOVISUAL OTHER AUDIOVISUAL MEDIA SERVICES “OFF‐LINE” INDUSTRIES INDUSTRY (Cinema, home video) (TV, video over the Internet and mobile platforms)
Source: e‐Media Institute.
… AND A VITAL CONTRIBUTION TO NEW MEDIA
Over the past decade, broadcasters have invested significantly in the so‐called “first cycle” of TV digitalisation, supporting the evolution of established TV platforms in the transition to digital. Broadcasters are now investing in a “second cycle” of digitalisation, developing a wide range of Internet‐based non‐linear services.
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EXECUTIVE SUMMARY
Demand for online video has surged dramatically over the past few years, with more consumption on more devices than ever before. Commercial broadcasters are at the forefront of this development in content distribution, not only on television, but also in the online, mobile and, now, the hybrid broadcast–broadband distribution environment.
Broadcasters continue to launch non‐linear TV services and anytime / anywhere / any‐device (ATAWAD) offers to the public, bringing content as close as possible to the consumers’ desires and needs, both inside and outside the living room. Over the past three years alone, the number of non‐linear services offered by commercial national broadcasters in Europe more than doubled, from 146 at the end of 2008 to 314 in 2011. This, in turn, is boosting demand and shaping online video consumption patterns towards longer, professional broadcast content.
Although hardware and software companies, consumer electronics, social networks and new content aggregators are now taking up position in the distribution segments of the audiovisual value chain, broadcasters remain the players investing the most in content.
… AS WELL AS ACROSS EUROPEAN FRONTIERS
Commercial broadcasters already offer programmes or even entire channels cross‐border or throughout the EU for both real‐time streaming or on‐demand viewing. A large number of online free‐to‐view catch‐up TV services offered by commercial broadcasters are available to audiences across the EU.
There are no legal barriers to transfrontier circulation of audiovisual content in localised versions or original language. As a result of the growing number of free and pay‐TV channels distributed across all platforms, niche programming or low‐budget productions are better able to meet demand outside of their domestic markets.
There is high availability of foreign language audiovisual services, whether on TV or Internet in each territory of the EU. These services are used by small segments of the resident population, particularly linguistic minorities, diaspora communities, and expatriates. For example, a majority (between 60% and 90%) of TV content offered by some pay‐TV operators in Europe is available with an original‐language option, especially in non‐English speaking countries.
Given the presence of sufficient demand to sustain a business case, content can circulate across borders on several platforms, through a variety of business models. Operators wanting to offer content across borders can do son withi the current licensing framework by purchasing and clearing rights on a multi‐territory basis.
CONCLUSION
Europe’s successful audiovisual sector now faces great opportunities, including the scope to tap into new revenue flows alongside the existing ones. Effective protection of intellectual property will be vital to ensure that European audiovisual media can meet the challenges of the digital age. If all players – broadcasters, producers, distributors and regulators – get it right, then the sector can continue not only to drive its own growth but also, via the many companies it works with and supports, to provide a firm base for a strong European presence online. This, surely, is in the interests of all Europeans.
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TABLE OF CONTENTS
INTRODUCTION ...... 5 EXECUTIVE SUMMARY ...... 7 1. A EUROPEAN SUCCESS STORY ...... 13 2. A VITAL CONTRIBUTION TO NEW MEDIA Broadcasters’ content at the heart of digital and online platforms ...... 21 Reaching consumers on all platforms ...... 22 Distribution strategies: evolving in line with consumer demand ...... 24 Commercial broadcasters’ new digital and online services: a growth story ...... 24 Born digital: the emergence of web‐native content ...... 25 3. BROADCASTERS’ CONTENT IN THE ONLINE VIDEO WORLD ...... 29 4. SUBSTANTIAL AND INCREASING PROVISION OF CONTENT ACROSS EU BORDERS ...... 35 Cross‐border distribution of TV channels, contentd an formats ...... 36 Availability of foreign language linear and non‐linear audiovisual services in European countries 40 Services available on established TV platforms ...... 40 Services available online ...... 40 Commercial factors for online cross‐border distribution of audiovisual content ...... 41 Monetisation of transfrontier demand ...... 41 APPENDIX I: A growing number of linear and non‐linear services in Europe ...... 43 Linear and non‐linear audiovisual services in France ...... 43 Linear and non‐linear audiovisual services in Slovakia ...... 44 Linear and non‐linear audiovisual services in Sweden ...... 44 APPENDIX II: Broadcasters’ VoD services...... 47 APPENDIX: III Endnotes ...... 53 References ...... 55 Glossary ...... 57 Table of figures ...... 61 Methodological note and disclaimer ...... 63
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1. A EUROPEAN SUCCESS STORY
KEY POINTS
• In the European Union, the editorial content sector (print, music and radio, audiovisual, Internet and multimedia publishing industries) was worth in 2010 around €279 billion, which is equal to 2.3% of GDP. It drives growth in and supports the knowledge and cultural sectors, the consumer electronics and information technology sectorsd an the whole digital economy.
• The audiovisual industry is one of the most dynamic components of the editorial content sector. Despite periods of heavy economic downturn, it has experienced a decade of extraordinary growth (56% between 2000 and 2010), creating jobs and propelling innovation in the larger editorial sector.
• Broadcasters are the main players in the audiovisual industry, contributing to economic growth and cultural development at a national and international level, and investing a large proportion of their turnover (sometimes as much as 50%) in creating and distributing valuable content to mass and niche audiences.
• The major European commercial broadcasters spent €15.1 billion in 2010 on content: news, sport, entertainment, drama etc. – €41 million every day of the year.
• The audiovisual industry also contributes to a significant extent to overall job creation in the wider editorial content sector. In the UK, for example, the audiovisual industry accounts for around half of all the jobs in the editorial content sector in 2010, and employed 15% more workers in 2010 than in 2001.
1.1. Europe’s national television markets are very regulates investment in content and innovation in competitive. Unlike some parts of the world, advertising, then European television can aspire European markets typically feature strong to be a successful marriage of creativity and national free‐to‐air and pay operators alongside commerce. The ideal model – one in which public well‐financed public broadcasters and global broadcasting can also play a positive, well defined players – even before the arrival of new entrants. role – caters both for the niche interest and the Each of these broadcast players is driven mass audience. And it is European audiences’ constantly to innovate in technology and in appreciation for high‐end content which has programme content, to the benefit not just of the consistently rewarded investment in original media sector but also to the wider European content, at a level which could not have been economy, contributing significantly to direct and foreseen twenty years ago. indirect employment and – increasingly – to the balance of trade. 1.3. In today’s converged environment, telecommunication networks and services 1.2. Neither entrepreneurial risk‐taking nor creative increasingly serve the exchange and circulation of talent can succeed alone – rather, if creativity and editorial content (mostly audiovisual traffic), commerce are harnessed together, and provided along with their original purpose of enabling voice the legal framework rewards rather than and data communication.
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FIGURE 2 – THE EDITORIAL CONTENT SECTOR AS A KEY PILLAR OF THE DIGITAL ECONOMY
KNOWLEDGE AND CULTURAL SECTORS
Education, scientific research and development, professional, scientific and technical activities, arts and recreation etc.
EDITORIAL CONTENT SECTOR
Book, newspaper, magazine and publishing industries, music and radio industries, audiovisual industries, Internet and multimedia publishing industries.
CONSUMER ELECTRONICS AND INFORMATION TELECOMMUNICATIONS TECNHOLOGY SECTORS SECTOR Manufacturing of devices (TV sets, DVD and Blu‐ray players, Landline and mobile set‐top‐boxes, game consoles, telecommunication networks mobile devices, personal and services, Internet access etc. computer etc.), software publishing, provision of IT services etc.
Source: e‐Media Institute.
1.4. For example, in 2009, the total revenues 1.5. When measured at the turnover level (i.e. generated by the telecommunications sector in expenditure of consumers, advertisers and public the EU amounted to approximately €350 billion, sector contribution) 1, the EU’s editorial content equal to 2.9% of GDP. Although a precise sector (as defined above) was worth in 2010 estimation exercise may be complex and out of around €279 billion, which is equal to 2.3% of the scope of the present study, clearly a GDP. Its audiovisual component (the “audiovisual significant and growing share of the traffic across industry”) – one of the largest within the sector – telecom networks – and also, therefore, of the generated around €95 billion in turnover, equal to economic value associated with it – is linked to 34% of the editorial sector’s total in the same audiovisual content. In 2010, video traffic alone year (see Figure 3). accounted for 37% and was the largest single component of total Internet traffic globally (see Figure 8).
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FIGURE 3 – EUROPEAN UNION: THE EDITORIAL CONTENT SECTOR – AUDIOVISUAL INDUSTRIES VS OTHER EDITORIAL CONTENT INDUSTRIES (2010) (€ BILLION AND %)
AUDIOVISUAL INDUSTRIES (Free‐to‐air and pay‐TV, cinema, home video, video over the 95 Internet and mobile platforms) TOTAL (34%) €279 Bn. OTHER EDITORIAL 184 CONTENT INDUSTRIES (66%) (Book, newspaper and magazine publishing, directories, radio, music, non‐video Internet / mobile content, videogame titles, off‐line multimedia)
Source: e‐Media Institute estimates on various sources (see Appendix III, endnote n. 2). Note: data include expenditure of consumers, advertisers and public sector contribution.
1.6. The audiovisual industries can be further broken 1.7. In terms of turnover, AVMS – linear and non‐ down into two main categories (see Figure 4): the linear services, whatever the platform – account audiovisual media services (AVMS) industry, for 84% of the total value of the audiovisual including all services distributed over networks industries, while the offline components make up (broadcasting, Internet and mobile), and what we the remaining 16%. call “offline” audiovisual media, consisting of cinema and physical home video.
FIGURE 4 – AUDIOVISUAL MEDIA SERVICES VS OTHER AUDIOVISUAL “OFFLINE” INDUSTRIES (CINEMA AND HOME VIDEO) (2010) (€ BILLION AND %)
OTHER “OFF‐LINE” AUDIOVISUAL 15 INDUSTRIES (Cinema, home video) (16%)
TOTAL €95 Bn.
AUDIOVISUAL MEDIA 80 SERVICES INDUSTRY (84%) (Free‐to‐air and pay‐TV, video over the Internet and mobile platforms)
Source: e‐Media Institute estimates on various sources (see Appendix III, endnote n. 2). Note: data include expenditure of consumers, advertisers and public sector contribution.
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1.8. Despite periods of economic downturn, the AVMS that audience fragmentation would drive down industry has experienced a decade of growth and broadcasters’ revenues, obliging them to invest in innovation, growing by 56% (as shown in Figure cheaper content. To date, however, the broadcast 5). The total editorial content sector has grown by business model has proven robust enough to 15% over the same period. rebound from the recession of 2008/09 2 and broadcasters have built on, rather than discarded 1.9. The audiovisual industry has been one of the few the virtuous circle of expensive content attracting engines propelling growth in the larger editorial larger audiences, which can be monetised content sector: through subscription or advertising to fund the next slate of investments in content 3. • The AVMS industry – which is essentially based on broadcasting – has grown by 56% between 2000 and 2010; FIGURE 5 – GROWTH RATES OF THE EDITORIAL CONTENT INDUSTRIES IN THE • The combined growth rate for the offline EUROPEAN UNION (2000‐2010) audiovisual industries was only 7%; (%)
• The other editorial content industries 56% have grown by only 3%, on aggregate. In particular: the radio and recorded music industries have decreased by 26%; the print publishing industries have declined by an aggregate 7%; starting from a very small base, the online and offline multimedia publishing industries (including non‐video Internet and mobile content, and video game publishing) 7% have recorded exponential growth 3% (+287%), mainly through Internet advertising. AUDIOVISUAL OTHER “OFF‐LINE” OTHER EDITORIAL MEDIA SERVICES AUDIOVISUAL CONTENT INDUSTRIES INDUSTRY INDUSTRIES (Book, newspaper and 1.10. Free‐to‐air and pay‐TV account by far for the (Free‐to‐air (Cinema, magazine publishing, and pay‐TV, home video) directories, radio, largest share (over 99%) of the total turnover video over the Internet music, non‐video Internet / generated by the AVMS industry. Crucially, these and mobile platforms) mobile content, videogame titles, operators reinvest a significant share (between off‐line multimedia) 40% and 50%) of that revenue in content acquisition and original production. As the only Source: e‐Media Institute estimates on various sources (see Appendix III, endnote n. 2). operators that fulfil a role along the entire Note: data include expenditure of consumers, content value chain (from conception to advertisers and public sector contribution. consumer distribution), commercial broadcasters occupy a pivotal position and have a primary economic function in the audiovisual market. 1.12. But how much do broadcasters spend on their on‐ screen content? There have been few attempts to 1.11. Indeed, a key challenge for the broadcasting estimate the scale of broadcasters’ investment in industry has been, and will remain, the need to content across the EU. This is partly because of invest in original, first‐run content to appeal to methodological issues, including differences in viewers. Good content – whether sport, drama, definition 4 or scope 5 and partly because, in some news or entertainment – is not cheap and European media markets, broadcasters’ questions have been raised over the future of programme spend is a matter of commercial high‐value original production, on the premise confidentiality. However, there are a number of
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exceptions. The national regulatory authorities Slovakia, Slovenia, Spain, Sweden and the UK 7. for the UK and France, Ofcom and the CSA, each publish aggregate figures. And the European 1.14. Our research shows that the aggregate Broadcasting Union is on record as stating that expenditure on content of the largest European Europe’s public broadcasters invest a total of €10 commercial broadcasting groups, in these fifteen billion annually in programme content (excluding European markets in 2010 was €15.1 billion. news and sport) 6. 1.15. For an overall total of European broadcasters’ 1.13. In writing this report, we do not seek to provide a content spend, one would need to add the definitive total of commercial broadcasters’ expenditure of public broadcasters, and of investment in programme content. With around commercial operators in the remaining EU 6800 commercial channels operating in the EU27, markets. But the figure of €15.1 billion annual the great majority of whom have little or no investment – which translates to €41m per day ‐ budget for original programming, this would have across Europe’s largest groups is itself a been an unrealistic exercise. Instead, we focussed testimony of the crucial role of compelling on the largest operators in the biggest European content in the new media landscape. member states as the broadcasters likely to have the scale and resources necessary to invest in 1.16. A more detailed analysis of the editorial content original content. We have aggregated the sector in the largest EU markets (France, expenditure on in‐house and commissioned Germany, Italy and the UK), illustrates programmes, movies, sports rights and news from commercial broadcasters’ role in the audiovisual the largest media groups active in Bulgaria, the industries and in particular their contribution in Czech Republic, Denmark, France, Finland, terms of investment in content creation and Germany, Italy, Norway, Poland, Romania, acquisition.
NOTES TO CHAPTER 1 1 See Appendix III, endnote n. 1. 2 European Audiovisual Observatory press release, “Private television groups back to pre‐recession turnover levels”, 13 September 2010. 3 The Economist, In praise of television, the great survivor, 29 April 2010. 4 For example, the data which Member States are obliged to return under the Audiovisual Media Services directive excludes important genres such as news and sport, and is based more on transmission hours than investment. The picture is further complicated by the introduction by some Member States of a hierarchy of sub‐ quotas and categories, i.e., distinguishing between “works” and other content. 5 The European Audiovisual Observatory partnered with a number of research institutes to produce the “Eurofiction” reports until 2003, but these only covered one genre in five national markets. 6 http://www.ebu.ch/CMSimages/en/Sarajevo%20Keynote%20by%20DLewis%20for%20Ingrid_tcm6‐73165.pdf. 7 The exact total is €15,107,821,000. The broadcasters surveyed were: Antena 3, BSkyB, Canal +, CME, ITV, M6, Mediaset, Mediaset España, Modern Times Group, MTV Media, Prisa TV, ProSiebenSat1, RTL Television, Sky Deutschland, Sky Italia, TF1, TV4, TVN and Viacom. Sources include Annual Reports, investor relations presentations, regulatory bodies, and national consultancyt studies bu also conversations with individual broadcasters. In some cases, company data was given on condition of confidentiality. For non‐euro currencies, conversions were calculated at the rates published on www.xe.com on 6 December 2011.
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CASE HISTORIES: FRANCE, GERMANY, ITALY AND THE UK
As shown in Figure 6, in France, Italy and the UK, audiovisual industries make a significant contribution to the overall value of the editorial content sector.
In France, Italy and the UK, the creation and distribution of audiovisual content in all its forms and across all platforms accounted for 41% to 42% of the total turnover generated by the editorial content sector.
In Germany, where other components of the editorial content sector are comparatively larger, particularly print media, audiovisual industries still accounted for over one‐quarter (26%) of the sector’s turnover, generating €15.6 billion in 2010.
In all the countries considered, the audiovisual media services (AVMS) industry accounts by far for the largest segment of the larger audiovisual industry, while the other offline components (cinema and home video) retain a marginal and decreasing share though with local differences such as the strong performance of French cinema, with record box office sales in 2011.
Public and commercial broadcasters generated 79% of the total turnover of the larger audiovisual industry in France and the UK, and 87% in Italy. In absolute terms, the aggregate turnover generated by broadcasters ranged from €10.3 billion in Italy to €14.5 billion in the UK.
But most relevant to the European debate on the digital agenda is the proportion of turnover that broadcasters reinvest in content. This is significant, especially if one takes into account investments for the acquisition of rights and the production of live sport. In France, during 2009, broadcasters invested around €5.4 billion in programming, including production, co‐production, commissioning and rights’ acquisition. This investment, representing around 48% of the turnover generated by broadcasting during the following year, accounts for the vast majority of the audiovisual content circulating in the French market (source: CSA ‐ Conseil Supérieur de l'Audiovisuel).
Similarly, total investment in content in, the UK, was approximately £5.4 billion (€6.3 billion) in 2010, equal to 43% of the total turnover generated by the industry in the same year. In 2010/11, for example, BSkyB alone spent some £2 billion (€2.3 billion) in programming, of which £1.2 billion (€1.4 billion) was invested in British content (source: Ofcom).
The audiovisual industry also contributes to a significant extent to the overall job base and job creation in the wider editorial content sector. While data are not available for all the countries analysed here, in the UK the entire editorial content sector employed 336,000 individuals in 2010, half of whom worked in the audiovisual industries alone, whose overall job base grew by 15% since 2001 (source: Eurostat).
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FIGURE 6 – BREAKDOWN OF TOTAL EDITORIAL CONTENT SECTOR IN FRANCE, GERMANY, ITALY AND THE UK: AUDIOVISUAL INDUSTRIES VS OTHER EDITORIAL INDUSTRIES (2010) (€ BILLION AND %)
TOTAL EDITORIAL CONTENT SECTOR €45.1 Bn.
14.7 (33%) TOTAL EDITORIAL CONTENT SECTOR 26.8 3.6 €60.2 Bn. (59%) (8%) 13.0 (22%)
2.6 (4%)
44.6 (74%)
TOTAL EDITORIAL CONTENT SECTOR €34.6 Bn. 10.3 11.3 16.5 (37%) (33%) (58%) 20.5 1.4 (5%) (59%) 2.8 (8%) TOTAL EDITORIAL CONTENT SECTOR €28.2 Bn.
AUDIOVISUAL MEDIA SERVICES INDUSTRY (Free‐to‐Air and Pay‐TV, video over the Internet and mobile platforms)
OTHER “OFF‐LINE” AUDIOVISUAL INDUSTRIES (Cinema, Home Video) OTHER EDITORIAL MEDIA INDUSTRIES (Book, newspaper and magazine publishing, directories, radio, music, non‐video Internet / mobile content, videogame, off‐line multimedia publishing)
Source: e‐Media Institute estimates on various sources (see Appendix III, endnote n. 2). Note: data include expenditure of consumers, advertisers and public sector contribution.
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2. A VITAL CONTRIBUTION TO NEW MEDIA Broadcasters’ content at the heart of digital and online platforms
KEY POINTS
• The transition from a broadcast to an integrated broadcast–broadband environment is blurring the boundaries between TV services distributed over established platforms and audiovisual content distributed over the Internet.
• While TV viewing has risen to an historic high, demand for video content online has been growing exponentially over the past few years. Video is now the single largest component of consumer Internet traffic and online video consumption is migrating from the traditional “PC–Web” environment to a multi‐device set‐up.
• Professional content now represents the main online video application, even in the presence of massive volumes of other types of audiovisual content.
• While the impact of the Internet and the transition to a more complex audiovisual distribution environment has led to the rise of a large variety of non‐editorial players and the multiplication of content services, broadcasters remain the players investing the most in original content.
• Commercial broadcasters have invested heavily in the creation and distribution of new linear and non‐linear services, and their number and uptake have grown strongly over the past decade. While the number of linear services available has continued to grow, broadcasters’ new catch‐up TV and video‐on‐demand services offered on multiple screens have proved extremely popular with European consumers, thereby encouraging further innovation and launching of new services. Over two years, e‐ Media Institute estimates that the number of non‐linear services offered in the EU 27 by national commercial broadcasters alone more than doubled, from 146 at the end of 2008 to 314 in 2011.
• Some new Internet‐based services recently launched by European commercial broadcasters innovate by integrating linear and non‐linear offers. In some cases web‐native content and services have migrated to TV, demonstrating that TV and the Internet can create a virtuous circle based on valuable content.
2.1. But what of the future? The “imminent death of able to anticipate and serve the consumer linear television” was forecast with ominous demand for more choice at the same time as regularity for much of the last decade. In this continuing to fuel consumers’ appetite for linear vision of the future, “top‐down” broadcasting was television. supposed to give way for innovative, individualised ways of consuming programme 2.2. Technology and content have both evolved and content. The reality has been rather different. will continue to do so, until we reach the stage Europe’s audiovisual content sector – it may no where consumers no longer differentiate longer make sense to refer to “broadcasters” – between the “broadcast” and “broadband” paths has proven itself to be remarkably innovative, which content may take to arrive on screen. If the
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consumer no longer distinguishes between the accounted for by professional content (see distribution models, nor should operators – Chapter 3). Over the past six years, the Internet rather, the focus should be on technical and has become increasingly audiovisual, laying the editorial quality, on the terms and conditions of foundation for the integration of TV and online. consumption (including price), the degree of user Since 2005, distribution and consumption of interaction, the compatibility with audiovisual content over the Internet has grown, complementary “second screen” devices and both in terms of the volume of content available social networks, etc. and consumers’ viewing time. According to Cisco3, in 2010, worldwide Internet video traffic accounted for 37% of total consumer Internet Reaching consumers on all traffic and will account for over 50% of it by the platforms end of 2012.
2.5. According to the same source, on‐demand long‐ 2.3. Over the past five years, TV consumption has form video (film, TV programmes, etc.) represents increased in eight European markets, as set out in the bulk of online video traffic and will continue 1 Figure 7 . The pan‐European trend is also to account for a majority of it in the future. In 2 positive . The growing number of free and pay‐TV 2010, long‐form video accounted for 63% of total channels available to the audience, as well as the Internet video traffic globally. In 2015 (see Figure increasing penetration of "advanced" services (HD 9) long‐form video is projected to reach 47% of services, Personal Video Recording – PVR the total. This is the direct consequence of the systems, etc.), were the main factors propelling progressive transformation of the Internet video growth in TV viewing. environment from one primarily centred on user‐ generated and illegal video traffic to one where a 2.4. In parallel, online video consumption has also growing amount of professional video content is grown dramatically and an increasing portion of it consumed.
FIGURE 7 – AVERAGE DAILY LINEAR TV CONSUMPTION IN SELECTED EU COUNTRIES (MINUTES PER VIEWER)
2010 +9 +4 +23 2005 +17 246 245 +12 241 242 237 234 +6 min 223 +3 217 219 212 211 206 201 204
+19
166
147
Source: e‐Media Institute on AGF /GFK, BARB, Kantar Media, Mediamétrie, Auditel, MMS, AGB Nielsen Polska, TNS 4.
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2.6. In addition to on‐demand long‐form video, other 2.7. In the online world, professional audiovisual forms of online video consumption are expected content now represents the main video to grow over the next few years. Today, and application, despite the presence of massive increasingly in the coming years, consumers will volumes of other types of audiovisual content have access to a wide range of Internet‐ (amateur, non‐profit, music‐related, marketing, connectable devices, from TVs to STBs, game etc.) Over the past year, one of the most consoles and Blu‐ray Disc players, that are able to significant patterns in online audiovisual deliver video content once only accessible consumption has been the strong growth of the through a PC onto the TV set. For example the average length of videos viewed. In 2010, for the increasing popularity of smartphone handsets first time the number of videos viewed online (already accounting for 50% of all active mobile decreased in the UK (‐6%), France (‐14%) and handsets in certain markets) and other mobile Germany (‐13%). In parallel, the length of videos devices (tablets, e‐readers, etc.), combined with viewed in these countries increased by 13% to an always‐on connectivity and the growing average of 5.6 minutes 5. These figures clearly performance of wireless networks, may be indicate a shifting preference to consuming expected to boost mobile video consumption. fewer, longer videos. Equally, according to Cisco online video delivered directly to the TV set (which tripled in 2010) is 2.8. This shift in demand seems to be directly linked to projected to increase 17 times by 2015, to the evolving strategies of top online video become the second category of consumer providers (aggregators, broadcasters, etc.), Internet video traffic after long‐form video, with resulting in the growing availability of long‐form 18% of the total. video content.
FIGURE 8 – WORLDWIDE CONSUMER INTERNET TRAFFIC EVOLUTION BY TYPE (EXABYTE/MONTH)
7.9
Other Web, email and data 5.7 Internet video 8.6 P2P file sharing 4.0 6.8 2.9 Total 5.3 33.6 2.0 57% 4.1 24.4 1.4 3.1 17.6 2.4 12.1 Total 4.7 8.1 37% 8.1 4.1 4.7 5.3 6.0 7.0
2010 2011e 2012f 2013f 2014f 2015f
Source: e‐Media Institute on Cisco data. Notes: consumer Internet traffic is defined as any IP traffic that crosses the Internet and is not confined to a single service provider's network. “Other” consumer Internet traffic includes non P2P file transfer, video calling, online gaming, VoIP and other.
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FIGURE 9 – WORLDWIDE CONSUMER 2.11. The impact of the Internet in the transition to a INTERNET VIDEO TRAFFIC BY CATEGORY IN more complex distribution environment for 2015 audiovisual content has led to the entry of a large (% OF TOTAL INTERNET VIDEO TRAFFIC) variety of non‐editorial players. Despite this
evolution, commercial broadcasters still remain Other among the few players investing directly (and those investing the most) in original content and Mobile 6% driving the development of audiovisual markets 10% both with TV‐native and Internet‐native content.
TOTAL Video 33.6 47% Long Commercial broadcasters’ new to TV 18% form EB/month digital and online services: a growth story 10% 9% Live TV 2.12. Over the last twenty years, Europe has seen a Short consistent rise in the number of linear TV form channels available to audiences. According to the European Audiovisual Observatory, there were Source: e‐Media Institute on Cisco data 6. 9,893 TV channels available in 36 European
countries at the end of 2010 (including local and Distribution strategies: evolving regional channels). 7,622 of these channels are established in the EU, and around 90% are in line with consumer demand operated by commercial broadcasters. e‐Media
Institute estimates that around 2,000 of these channels – over one in four, have been launched 2.9. Over the past decade, broadcasters have heavily invested in a “first cycle” of TV digitisation, since December 2006.
leading to a proliferation of new linear and non‐ 2.13. Europe has also witnessed strong growth, linear services (digital video recording, push particularly during the past five years, in the video‐on‐demand, etc.) The innovation cycle and number of non‐linear TV services available. While, the development of a multichannel environment at first, VoD services were limited to the TV have changed both Pay and FTA TV, generating a platforms that have an embedded return path strong impact on the national production value (cable and IPTV), non‐linear online services have chain as the demand for content increases. boomed with the development of Internet video
and the increase in broadband speed. 2.10. Broadcasters’ strategies now build on the strong
integration of the following three areas: 2.14. The most recent comprehensive survey of non‐ • Investments in new digital linear / non‐ linear offers available in the EU dates from 7 linear services on the TV platform; December 2008 . At that time there were 696 VoD and catch‐up TV services operated by 366 • Investments in new services in the providers. Of these, 394 (56.6%) were delivered Internet video environment; via the open Internet, 37% via IPTV or cable TV, and the remaining via satellite or DTT. • Integration of both types of services and distribution on all available screens 2.15. According to e‐Media Institute, over the past two (ATAWAD approach). years alone, the number of non‐linear services offered by national commercial broadcasters
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more than doubled, from 146 at the end of 2008 cross‐platform consumer brands. to over 314 in 2011. 2.18. Broadcasters are not only simply distributing TV 2.16. Appendix I contains detailed data on the content online, they are also investing in original evolution of the number of linear (2001, 2006 and web‐native audiovisual services and titles. These 2011) and non‐linear (2008 and 2011) audiovisual can take the form of extensions of their TV services offered by commercial broadcasters in properties (programme and/or channel‐related three sample markets (France, Slovakia and content) or content (formats, shows, fiction, etc.) Sweden). specifically designed for the Internet environment. In some cases, successful web‐ originated content has migrated to TV: FIGURE 10 – NUMBER OF NON‐LINEAR AUDIOVISUAL SERVICES OFFERED BY • ITV launched in September 2011 the Just COMMERCIAL NATIONAL BROADCASTERS IN Rosie website, with a three‐part online video THE EU (2008‐2011) series deriving from long‐running soap opera (UNIT) Coronation Street. In the first month, the website attracted around 260,000 unique 314 users (80% of whom watched the videos) and 1.6m page views. The success of the online show gave ITV the opportunity to broadcast the episodes on ITV2, attracting over 1 million viewers in total. 146 • The web‐native series Being Victor, a teen comedy drama produced by Shed Media in collaboration with CTVC, was first released online by MTV UK in September 2010 in 20 episodes, each up to ten minutes in length. 2008 2011 MTV also used social media tools, such as
Twitter feeds and links to the MySpace Source: e‐Media Institute. pages of independent bands featured in the Note: data include non‐linear services provided by show, to strengthen the interaction with the commercial national broadcasters. Data exclude non‐ audience. From October 2010, Scottish linear services provided by telecom operators, cable TV broadcaster STV then broadcast the show, operators, public broadcasters, local and regional TV re‐edited into six 25‐minute episodes. operators and Internet companies. Data for 2011 retrieved on 17 October 2011. • One of Italy’s first all‐news websites, Mediaset’s TGCOM24, has been progressively integrated into TV Born digital: the emergence of programming, with fifteen short videos from webnative content the service screened every day on the broadcaster’s channels. At the end of
November 2011, Mediaset launched the 2.17. In the converged world, operators are making service as a fully‐fledged linear TV channel, web‐based services available on the TV set thanks broadcasting 24‐hour news programmes on to connected TV devices and other OTT services, the country’s digital terrestrial TV platform, and simultaneously TV‐based offers are moving thus becoming the first web‐native video online. In some cases, new and existing services service to become a thematic channel on TV. are being consolidated under single
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FIGURE 11 – BROADCASTERS’ INTEGRATED APPROACH TO CONTENT CREATION AND DISTRIBUTION IN THE INTERNET ENVIRONMENT
Linear TV 1. (simulcasting) TV channel live streaming
On‐demand offer 2. 3. 4. of TV programmes Preview TV Catch‐up TV Archive TV (pre‐broadcast) (short & long form)
5. TV‐native 6. Web‐native 7.Interactive Original content and services extra content content / events services programme / channel‐related (programme / channel (programme / channel (programme / channel related) related) related)
e.g. mini‐series, TV e.g. community, voting, e.g. behind the scenes, programme Web self publishing, social interviews, extra content spin‐offs networking
8. 9. Original content and services non‐programme / channel‐related Web‐native Advanced content / events interactive services
e.g. talent contest / e.g. Original Web scouting, series, Web news / self publishing, user magazines reporting, social networking
Source: e‐Media Institute. Note: Appendix II contains examples of such innovative audiovisual services, drawn from a set of seven national EU markets and from a variety of commercial operators from both the FTA and pay‐TV segments.
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FIGURE 12 – COMMERCIAL BROADCASTERS’ VIDEO‐ON‐DEMAND SERVICES IN SELECTED EUROPEAN COUNTRIES See detailed description in Appendix II.
Modern Times Group
Sky BSkyB Deutschland ProSiebenSat.1 TV4
RTL Group Canal+ Group (video section) (video section)
ITV Group TVN
(video section) CANAL+ Group MTV Networks CME Group
(video section) Mediaset Group
M6 Group TF1 Group Sky Italia
Source: e‐Media Institute.
NOTES TO CHAPTER 2 1 The sample countries have been chosen for analysis throughout this report so as to ensure the report represents a cross‐section of European media markets in terms of size, language, geography, penetration of various technologies, etc. 2 IDATE, World Television Market, August 2011. 3 Cisco Systems, Cisco Visual Networking Index, June 2011. 4 Figures refer to total viewers aged 4+ for France, Italy, Poland, Slovakia, Spain and UK, and viewers aged 3+ for Germany and Sweden. 5 comScore, The comScore 2010 Europe Digital Year in Review, February 2011. 6 See Appendix III, endnote n. 3 for a detailed explanation of Cisco’s definitions and the evolution of the long‐form video share of total consumer Internet video traffic. 7 European Audiovisual Observatory and Direction du développement des medias, Video on demand and catch‐up television in Europe, October 2009.
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KEY POINTS
• Professional video content remains the most sought‐after and watched, and most of it is broadcaster‐ produced. However, this content also accounts for the bulk of videos illegally exchanged on the Internet or viewed on illegal platforms.
• Broadcasters’ investment in non‐linear services is helping to reduce illegal consumption by stimulating consumer demand. Estimates indicate that around half of all online video views are now attracted by professional video, and mainly by broadcaster‐generated content (UK, April 2011, top‐10 online video properties).
• As a result of this expanding legal offer, European commercial broadcasters and their Internet video services now occupy top positions among the most popular online video destinations in their domestic markets.
• The volume of programming offered by broadcasters in non‐linear mode has increased greatly over the past few years. In France, for instance, in early 2009, 53% of the programmes offered by the seven national generalist channels in prime‐time and access‐prime‐time was available on catch‐up TV services. By the end of 2010, this proportion had risen to around 70%.
3.1. While it is true that broadcaster‐produced titles FIGURE 13 – PROFESSIONAL BROADCAST only make up a small share of the amount of total SHARE OF TOTAL VIDEO CONTENT VIEWED video content distributed over the Internet, it ONLINE IN THE UK (APRIL 2011) should also be stressed that they account for the (% OF TOTAL VIDEO VIEWS) vast majority of all professional titles available. In
other words, commercial broadcasters are the main editorial players in the Internet video PROFESSIONAL marketplace. BROADCAST CONTENT
3.2. Consumers now have many choices available as to how to watch content. However, what they TOTAL 48% want remains predominantly broadcaster‐ 52% 1.9 Bn. produced content. In fact, only professional video views broadcast titles have the potential to attract a large share of the consumers’ Internet video time OTHER and thereby contribute to a profitable audiovisual (UGC, brand and corporate marketplace, provided piracy is effectively communication, other tackled. non‐professional content)
3.3. Figure 13 considers the top 10 online video Source: e‐Media Institute estimates on UKOM, YouTube 1 properties in the UK, which accounted for 85% of data and other sources . online videos viewed in the UK in April 2011.
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e‐ Media Institute estimates that around half of some 500 million Internet users in September the views were attracted by professional video 2011, while 250 million used bittorrent in the content and mainly by two categories: same period, with top sites in each category broadcaster‐produced and music‐related content attracting very large audiences 4. which, in turn, is often created and distributed by broadcasters. 3.7. Tackling the supply of pirated content should remain a priority for the content sector and 3.4. The remaining share of the views is generated by policy‐makers through the blocking of illegal sites, non‐professional and non‐editorial video content, delisting of search results, removal of advertising such as user‐generated, brand and corporate from sites and withdrawal of services by payment communication, that only generates views on an facilitators such as PayPal and Mastercard. EU law aggregate basis, not individually, and represents is already being used to gain injunctions against the “long tail” of audiovisual consumption online. some illegal sites through national Courts, and Spain is currently implementing its own site‐ 3.5. The proliferation of illegal file‐sharing, streaming blocking legislation. While it is still early to and down‐loading sites represents a major threat elaborate on the positive effects of the shutdown to the economic and creative processes which of leading cyberlocker Megaupload on legal offers underpin broadcasters’ businesses, and several VoD sites have seen an increase in traffic consequently to digital and economic growth. following the closure. In France for example free Without the ability to earn a fair and sustainable catch‐up TV services and paid VoD platforms have return on investment content providers are registered increases of 25.7% in traffic during the unable to sustain their levels of output, which in weeks that followed the shutdown 5. turn reduces the level of new and innovative material available to consumers. Consequently, 3.8. Some countries have also adopted measures over time the creative engine that drives which address the demand for illegal content consumer demand for better networks and faster through a graduated notification process, such as connection speeds may slow or even stall. HADOPI in France. While only addressing illegal peer‐to‐peer file‐sharing rather than all forms of 2 3.6. According to Envisional , films and television online piracy, this approach is showing some content accounted for as much as 48% of the positive results. According to figures from IFPI 10,000 most exchanged torrent files in December and Nielsen, the number of P2P file‐sharers 2010, or 4,787 files 3. These two content decreased by 26% in France during the year to categories accounted for three‐quarters of all the October 2011, with a significantly higher files exchanged and identified as copyrighted in deterrent effect on the users targeted by the the month, excluding pornography. Although the Authority 6. The latest figures from Hadopi point means of distribution change, the share of to an even more significant slowdown inP2P professional broadcast content is very similar activity, with the ten most exchanged film titles with cyberlockers, where over 40% of links direct exchanged less than 2 million times in December to either cinema or TV content. Envisional has 2011, from close to 6 million in January 2011. also estimated that top cyberlockers attracted
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FOCUS: INCREASING CONTENT VOLUME OFFERED BY COMMERCIAL BROADCASTERS ONLINE
The volume of programming offered by broadcasters in non‐linear mode has increased greatly over the last few years.
According to the CNC, in France, in early 2009, only 53% of the aggregate programming offered by the seven historical national generalist channels in prime‐time and access‐prime‐time (5pm ‐ 12pm) was available on catch‐up TV services. By the end of 2010, this proportion had risen to around 70%.
At TF1, 75% to 80% of programmes from the 6 pm‐12 pm TV schedule (except films and some sport events) are now available for FTV catch‐up usually for seven days after transmission. In addition to this, over 6,000 videos are available through TF1’s TVoD service MYTF1 VoD. At M6, the proportion of programmes from the 6 pm‐12 pm TV schedule available for FTV catch‐up rises to about 90% with the same seven‐day availability and some programmes made available through the Pass M6 SVoD service after that period.
Over 80% of the programming from the five CANAL+ premium channels is available for catch‐up to subscribers, while programmes are usually available for up to one month after linear broadcasting. As shown in Appendix II, Canal+ also offers over 8,000 and 3,000 titles, respectively on VoD and SVoD.
The growing volume of TV programming and content offered by commercial broadcasters on their non‐linear platforms is also evident in Germany, where RTL’s three Now‐branded FTV catch‐up TV / TVoD services offer seven‐day catch‐up for full‐length primetime content and 30‐day catch‐up for full‐length daytime content. The combined video volume offered by the three websites is close to 12,000 titles, totalling around 8,000 hours. ProSiebenSat.1’s maxdome VoD service is Germany's largest video download site, offering more than 35,000 film and TV titles.
In Poland, TVN’s newly launched TVN Player VoD and catch‐up TV service had an initial offer of around 4,500 episodes, from series and programmes aired on its channels. In the UK, Sky offers around 1,000 hours of TV content and over 500 films on‐demand for free to its subscribers, in addition to the Sky Movies Box Office TVoD service, through its Anytime+ service.
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3.9. As a result of an expanding legal professional 3.12. Similarly, data from the UK, confirm the attraction offer, of which the examples above only potential of the video services offered by represent a small fraction, European commercial broadcasters. broadcasters’ online services now occupy top positions as the most popular online video 3.13. The video players of two commercial destinations in their domestic markets. broadcasters appear in the market top‐10 for April 2011. The ITV Player and Channel 4’s 4oD, 3.10. In Germany in April 2011, the online video offers were the sixth and seventh most used in the of the major commercial broadcasters month, with 2.3 million (8.6%) 1.5 million (5.4%) ProSiebenSat.1 and RTL attracted 10.2 million and unique users, respectively. 8.2 million unique viewers respectively. In terms of reach, this represents a significant share of the FIGURE 15 – TOP TEN INTERNET VIDEO Internet audience – specifically 23% and 18% PLAYERS RANKED BY TOTAL UNIQUE respectively of the total German Internet VIEWERS ON ALL DEVICES IN THE UK (APRIL population who watched video online in the 2011) month. The Viacom Digital family of properties were ranked third, closely behind RTL, with 8.2 Unique Rank Property million unique viewers (18% of total video viewers (000) audience online). Total Internet 26,943
3.11. These results not only reflect the increasing 1 YouTube 19,491 popularity of non‐linear professional broadcast 2 BBC 9,053 services from the three operators, but also a 3 VEVO 5,291 successful and long‐standing positioning of 4 Facebook 4,448 broadcasters in the non‐professional video 5 Yahoo! 2,675 community space, with portals such as 6 ITV.com 2,315 MyVideo.de (ProSiebenSat.1) and Clipfish.de 7 Channel 4 1,447 (RTL), that compete with YouTube on the German The CollegeHumor 1,310 8 market. Network 9 MSN/WindowsLive/Bing 1,297 10 Dailymotion 1,128 FIGURE 14 – TOP TEN INTERNET VIDEO 8 SERVICES RANKED BY TOTAL UNIQUE Source: UKOM .
VIEWERS IN GERMANY (APRIL 2011) 3.14. In addition, relatively higher public awareness Unique and penetration of catch‐up TV services in the UK Rank Property viewers (000) (35% of the population used catch‐up TV in the first quarter of 2011 9) means that the reach of Total Internet 44,928 Google’s sites in the UK is comparatively smaller than in Germany or Spain. While YouTube was 1 Google Sites 36,473 used by 87% and 81% of the respective online 2 ProSiebenSat.1 Sites 10,180 video population in Spain and Germany, it 3 Facebook.com 8,834 4 RTL Group Sites 8,218 reached 72% of users in the UK. 5 Viacom Digital 8,176 6 VEVO 7,727 3.15. Finally, in Spain, the online audiovisual services of 7 United‐Internet Sites 6,439 three major broadcasters, Viacom, public 8 Microsoft Sites 5,630 operator RTVE and Mediaset España respectively 9 Dailymotion.com 4,572 attracted 3 million, 2.4 million and 2.3 million 10 Zaoza.de 4,321 unique viewers, last March. Although the overall
Source: comScore 7. audiences still trail YouTube and other portals
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where short‐form non‐professional video is the 3.16. Another way of showing the growing dominant form of consumption, the three attractiveness of broadcast content online is to operators reached 15% (Viacom) and 12% (RTVE, compare broadcasters’ share of online video Mediaset) of the Spanish online video population views, which has increased significantly in recent in the month. years, as shown in Figure 16 below.
FIGURE 16 – TOP TEN INTERNET VIDEO FIGURE 17 – BROADCASTERS’ VIDEO SERVICE SERVICES RANKED BY TOTAL UNIQUE SHARE OF TOTAL VIDEO CONTENT VIEWED VIEWERS IN SPAIN (MARCH 2011) ONLINE IN THE UK (APRIL 2011) (% OF TOTAL VIDEO VIEWS) Unique Rank Property viewers (000) 4.3% 13.2% Total Internet 19,279
1 Google Sites 16,902 JUNE APRIL 2 VEVO 4,421 2008 2011 3 Facebook.com 4,008 4 Microsoft Sites 3,943 5 Dailymotion.com 3,405 6 Viacom Digital 2,973 Broadcasters’ Web video services / players 7 RCS Media Group 2,940 Other Web video services / players 8 USTREAM.tv 2,535 9 RTVE.es 2,397 Source: e‐Media Institute estimates on UKOM, YouTube 10 Gruppo Mediaset 2,301 11 data and other sources . Source: comScore 10.
NOTES TO CHAPTER 3 1 Data refer to the total producer‐generated video views across the top‐10 online video properties in the UK. See Figure 15. 2 Envisional, The State of Digital Piracy, January 2012. 3 Envisional data based on figures from PublicBT’s public tracker service. 4 Megaupload.com, the largest cyberlocker by traffic before last January’s shutdown, attracted close to 90 million unique visitors last September, while top bittorrent application uTorrent had a user base of over 140 million in the same month. 5 Hadopi press release, 7 March 2012. 6 IFPI, Digital Music Report 2012, January 2012. 7 Data refer to the total German online population aged 6+, and to services accessed from home and work locations. The ranking is limited to properties that offer video content, either in streaming or progressive download mode. Data exclude online video activity from public computers such as from Internet cafes or access from mobile phones or PDAs. 8 Data refer to the total UK online population aged 4+, and to services accessed from home and work locations. The ranking refers to video players rather than properties and data include access from all devices. 9 Ofcom, Communications Market Report: UK, August 2011. 10 Data refer to the total Spanish online population aged 6+, and to services accessed from home and work locations. The ranking is limited to properties that offer video content, either in streaming or progressive download mode. Data exclude online video activity from public computers such as from Internet cafes or access from mobile phones or PDAs. 11 Data include the Web properties and video players of the BBC, ITV and Channel 4 only, and exclude content by the same broadcasters that is viewed on other video sites or through other players (e.g. YouTube).
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KEY POINTS
• With the exception of music, the nature of editorial content binds it closely to the linguistic zone of production.
• But in today’s increasingly borderless world, online distribution is – alongside satellite, targeted expatriate services and format sales ‐ one of a variety of means by which more content is moving across borders than ever before.
• The research shows that a large proportion of TV content offered by some pay‐TV operators in Europe is available with an original‐language option, especially in the non‐English speaking countries.
• Although not all possible demand is yet met and not all TV content is available across borders, content licensing is not necessarily an obstacle to cross‐border distribution.
4.1. Historically, with the exception of music, the increasingly, for example, appeal to an audience enjoyment of which can transcend language anywhere in the world. boundaries, editorial content – books, newspapers, TV programmes ‐ has been 4.4. International circulation of audiovisual content, as consumed in its original language, with cross‐ with all editorial content, depends on three key border circulation limited at first to a foreign enabling factors: public that can consume it in that particular language. Where appropriate, translations and • Existence of measurable demand generated subtitled versions of content may appear later. by the content (in turn influenced by the specific event, brand and talent); 4.2. Cross‐border circulation of audiovisual products • The ability of the operator to localise saw its first major expansion in the early 1990s, distribution, i.e. effectively promote and thanks to the development of the home VHS market the content based on the market and the birth of multichannel TV. The specificities of the target territory, tailoring multiplication of platforms and services and the the offer to local preferences – in terms of development of programme format markets has advertising, film classification, holiday given a significant boost to such circulation over periods, and general public taste; the past fifteen years both for content with mass appeal, as well as the “long tail” of niche content. • Localisation of the content (re‐adaptation, dubbing, subtitling). 4.3. Today, in an increasingly globalised and connected world, there are more opportunities 4.5. As the research in this section demonstrates, with than ever before for editorial content to reach a sufficient demand to sustain a business case, wider audience. Some forms of content will have content can circulate across borders on several greater cross‐border appeal than others: content platforms and based on a variety of business produced in the English language may models. Operators wanting to offer content
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across borders can do so within the current FTA channels, including Scandinavia and the three copyright licensing framework by purchasing and Baltic republics. The second family of services is clearing rights on a multi‐territory basis. the Viaplay SVoD and TVoD platform, which complements the group’s Viasat pay‐TV offer and is offered on a multiplatform / multi‐device basis Crossborder distribution of TV with a very similar proposition across its channels, content and formats footprint, and four localised versions in Denmark, Finland, Norway and Sweden.
4.6. Germany’s leading commercial broadcasters RTL 4.10. But even when services themselves do not cross and ProSiebenSat.1 represent interesting borders, content does. examples of pan‐European FTA distribution. Their seven flagship channels (RTL, RTL II, VOX, and 4.11. International TV formats are a key development Super RTL, ProSieben, Sat.1 and Kabel Eins,) are that confirms the dynamism of cross‐border broadcast in clear on the Astra satellite, and can circulation of content. As a general rule, however, be viewed for free throughout Europe through a these formats need to be adapted to local culture simple free satellite receiver and dish. and taste, and localised versions are often those that have attracted the largest audiences. 4.7. Pay‐TV broadcasters BSkyB, Canal+ France and Sky Deutschland offer other examples of cross‐ border distribution to same‐language countries. Sports – FIA Formula One World BSkyB’s Sky Digital DTH service is available in the Championship UK and Ireland. Similarly, Sky Deutschland’s DTH service is available in Germany and Austria, where 4.12. The availability of sport content across Europe is Sky Deutschland also offers the dedicated sports well represented by the example of the channel Sky Sport Austria. Canal+ offers its distribution agreements signed by European bouquet of five premium channels (Les Chaînes broadcasters and FIA Formula One World CANAL+) and its CANALSat thematic package to Championship. Formula One can be watched live Switzerland’s French‐speaking territory. throughout Europe as well online in the major European countries. 4.8. Several commercial broadcasters operating in Scandinavia and Finland offer their services on a pan‐Scandinavian or pan‐Nordic basis, including European highbudget content – Borgia new digital on‐demand services. Swedish broadcaster TV4, for example, offers several of its 4.13. A very good example of European content that is thematic channels and related non‐linear services available across Europe as well as outside the EU on a pan‐Scandinavian basis. Similarly, sister is the €25 million European production Borgia, company C More Entertainment provides its coproduced in France and Germany in 2011 for family of premium channels across all Nordic CANAL+. Not only has this been widely licensed in countries both as standard linear and on‐demand Europe (see Figure 20), the series is also available services on STBs and online. in the US and Canada through the Netflix service.
4.9. Sweden’s MTG also offers its linear and on‐ demand services across several countries. In International TV channels – MTV particular, the group offers two main families of on‐demand services on a multi‐territory basis. 4.14. Viacom’s MTV channel is an excellent example of The first type of services is the Play‐branded FTV ubiquitous distribution. The brand is available as a catch‐up TV services, which are offered online linear offer through 26 localised versions in as across most of the countries where MTG offers many European markets on most distribution
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platforms, mainly on pay‐TV but also on FTA TV in TV Channel Format – Sky Sports News: Italy and Spain. Online, MTV has a network of one format, three broadcasters, five over 40 top‐level domains and hundreds of countries localised websites worldwide, offering access to extensive services which attract millions of music 4.18. The round‐the‐clock news service Sky Sports fans and contribute to the very high video ranking News is an example of a successful multi‐territory of the Viacom Digital properties in many TV channel format. Launched in the UK in 1998 as countries (see Chapter 3). In Europe, the MTV‐ Sky Digital’s first digital‐only channel, and among branded online network comprises over 20 top‐ the very first in Europe to offer continuous sport level domains and umbrella sites such as mtv.tv newscast, the original Sky Sports News brand is and MTV Networks Europe, giving access to some now available both in SD and HD in the UK and 45 localised websites. Ireland. The channel format has now been licensed to and localised versions are available to Sky Italia subscribers (Sky Sport 24 and Sky Sport TV show format – X Factor & others 24 HD) and to Sky Deutschland/Österreich subscribers in Germany and Austria (Sky Sport 4.15. Successful reality shows and other TV formats News HD). are, almost by their nature, cross‐border products. The X Factor, for example, is a 4.19. The Sky‐branded sport news services, which share television talent show originating in the United a similar format of 30 minutes newscasts and Kingdom and sold in the vast majority of sport / event‐specific features, have become European countries as well as worldwide. among the most trusted outlets in real time sport Country‐based adaptations of this format are information and are among the most watched currently broadcast in France on M6, on VOX in sport channels in the UK, Ireland and Italy where Germany, on TVN in Poland and Sky 1 in Italy. the channels have been available for several years1. Sky Sports News was the second most 4.16. Other examples from RTL Group’s Fremantle watched sport channel after Sky Sports 1 in the include the reality series The Farmer Wants a UK in January 2012, with a 0.7% share of total Wife, where the format, sold internationally, is viewing (source: BARB), and Sky Sport 24 was the adapted in order to cater for local taste. fourth most viewed sport channel in Italy in the same month, with a 0.3% audience share (source: 4.17. This is also true of game shows such as Price is Auditel). Right and Family Feud, of which Fremantle Media has made local versions in, respectively, 18 and 4.20. Sky’s sport news channels have also become a 28 European countries (including Turkey). It is multi‐platform brand in all markets where they essential to localise these programmes: for Price are available. The 24‐hour sport news service is is Right, the goods and prices have to be local and available live on the Web and mobile as part of current for the show to work. For Family Feud, the localised versions of the Sky Go multi‐screen the questions have to be relevant culturally and service in all five markets and as a dedicated topically. Sitcoms and long running serials are also smartphone app in the UK. localised so that they reflect the local culture.
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4 | SUBSTANTIAL AND INCREASING PROVISION OF CONTENT ACROSS EU BORDERS
FIGURE 18 – CROSS BORDER CIRCULATION OF A SAMPLE PROGRAMME (GENRE: EUROPEAN POLICE‐DRAMA)
ALARM FÜR COBRA 11 Police / action drama TV series. Produced by RTL from 1996 to date. Sold in 140 countries worldwide.
Free‐to‐Air TV
Pay‐TV (several operators)
Free‐to‐Air TV Free‐to‐Air TV Pay‐TV
Free‐to‐Air TV
Source: e‐Media Institute.
FIGURE 19 – CROSS BORDER CIRCULATION OF A SAMPLE PROGRAMME (GENRE: INTERNATIONAL TV CHANNEL)
MTV Music TV channel distributed worldwide. Launched in 1981.
Pay‐TV (several operators)
VoD (MTV On Pay‐TV Demand) (several operators) Pay‐TV (several Pay‐TV operators) (several operators)
Pay‐TV (several operators)
Pay‐TV (several operators) Free‐to‐Air TV
Source: e‐Media Institute.
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FIGURE 20 – EXAMPLES OF CROSS‐BORDER CIRCULATION OF AUDIOVISUAL CONTENT, SERVICES AND FORMATS
COUNTRY GENRE (CHANNEL, TV CONTENT AND UK FRANCE GERMANY ITALY POLAND SWEDEN SLOVAKIA FORMATS) EXAMPLE Pay‐TV: Sky FTA TV / Pay‐TV: Pay‐TV: Boxer, Pay‐TV: BSkyB, Deutschland, INTERNATIONAL Sky Italia, Canal Digital, Pay‐TV: UPC Virgin Media , KabelKiosk, Kabel Pay‐TV: Cyfrowy THEMATIC Pay‐TV: CanalSat, Telecom Italia, Tele2Vision, Broadband, MTV TalkTalk, Sky Go / Deutschland, Polsat, Cyfra+, n, Numericable, SFR. Fastweb / On Sappa, Telia Orange, T‐Com, CHANNELS On demand: MTV Unitymedia, UPC Poland. Demand: MTV On Digital‐TV, Com Swan. (MUSIC) On Demand. Deutsche Demand. Hem, Viasat. Telekom. FTA TV / Pay‐TV: FTA TV / Pay‐TV: INTERNATIONAL FTA TV / Pay‐TV: Numericable, FTA TV / Pay‐TV: Balsta Kabel, THEMATIC BSkyB, Virgin Free, SFR, FTA TV / Pay‐TV: FTA TV / Pay‐TV: FTA TV / Pay‐TV: SKY NEWS Kabel Alfavision, Com Media, TalkTalk, Bouygues Sky Italia. Toya. UPC Direct. CHANNELS Deutschland. Hem, Canal Sky Go. Telecom, Orange, (NEWS) Digital. CanalSat. FTA TV: Mediaset NON‐ FTA TV: Channel 5 (Italia 1 and EUROPEAN (seasons 1‐4) / FTA TV: RTL HOUSE, M.D. FTA TV: TF1. Canale 5) / Pay‐ FTA TV: TVP2. Pay‐TV: Canal+. FTA TV: STV. Pay‐TV: BSkyB Television. HIGH BUDGET TV: Fox, Mediaset (seasons 4+). CONTENT Premium Joi. Pay TV: Sky Pay‐TV: Sky Italia, Pay‐TV: ESPN Deutschland (also Mediaset Pay‐TV: Viasat available on distributed via Premium / On Pay‐TV: Canal+ Sport available on SERIE A BSkyB, Virgin Pay‐TV: Canal+. third party SPORT EVENTS demand: Poland. Viasat / On Media, BT Vision, platforms), Mediaset demand: Viaplay. TalkTalk TV. Deutsche Premium. Telekom. FTA TV: ITV / On FTA TV: M6 / On TV SHOW Pay‐TV: Sky Italia X FACTOR demand: ITV demand: M6 FTA TV: VOX. FTA TV: TVN. FTA TV: TV4. (Sky 1). FORMATS Player. Replay.
Source: e‐Media Institute.
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programmes and TV channels on pay‐TV Availability of foreign language platforms (Sky Italia, Mediaset Premium, linear and nonlinear audiovisual Fastweb, etc.) – including sports, films, and services in European countries imported drama – can be watched in the original production language by simply
selecting the language option on the remote Services available on established TV control or the TV set settings. This can also platforms be done on DTT.
4.24. These offers from the Italian platform operators 4.21. Numerous foreign‐language services can be add to over 500 foreign‐language TV channels viewed across a multiplicity of platforms in each available via satellite in Italy 3. EU Member State. These services appeal to
segments of the resident population, particularly 4.25. A similar pattern is seen in France: linguistic minorities, such as diaspora communities, migrants and expatriates, as well as • 39 pay‐TV services are available in original as visitors. well as the French version on the largest
satellite package, CANALSat, in addition to 4.22. Transfrontier distribution of audiovisual content nine free‐to‐air channels available in both was largely made possible by the development of original and French versions and a further 60 DTH satellite broadcasting and the launch of free channels available in their original broadcasting satellites whose footprints language only 4. encompass a large number of European countries. Today, SES Astra offers over 1,700 TV • Moreover, certain films broadcast in the Les channels to around 58 million DTH satellite Chaînes CANAL+ bouquet can be watched in households, in addition to some 78 million cable foreign language with subtitling. TV and IPTV homes, in Europe and North Africa 2. Eutelsat satellites offer 2,000 channels to around • As in Italy, there are also many foreign 50 million DTH satellite homes, in addition to language TV channels available via satellites another 90 million through cable TV and IPTV in covering the French market (over 500, Europe. Several of these channels are available according to Astra and Eutelsat figures). FTA and can therefore already reach very large 4.26. Interviews by e‐Media Institute with some of and diverse audiences with original‐language Europe’s largest broadcast platform operators services. In addition, thanks to digital encoding, confirm that the possibility to watch programmes foreign content targeting a given market territory in their original language through a language in localised form can also be viewed in its original option is increasingly widespread. In one language. This option is frequently available on instance, approximately 90% of the programmes pay‐TV platforms, but also on national FTA TV. broadcast are available in the dubbed version and
the original language. A second operator says that 4.23. In Italy, for instance: approximately 15% of the sport content it • 16 foreign‐language channels are distributed broadcast is available in two languages. This on Tivùsat, a joint venture of Rai, Mediaset, proportion rises to approximately 45‐50% for and Telecom Italia Media; library film content and around 90% for new film content. • 32 foreign or multiple‐language services are offered by Sky Italia on DTH satellite and Services available online IPTV, mainly in the sports, news and entertainment genres; 4.27. In addition to linear services, commercial broadcasters already offer some programmes or • A large and growing selection of entire TV channels on a cross‐border basis or
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throughout the EU for real‐time streaming (linear) distribution platforms that include TV networks. or on‐demand viewing. These typically involve In terms of exploitation patterns, revenues, content that is produced in‐house by the consumer expectations and needs, all platforms broadcasters, such as information and news are strongly linked to one another. For films and channels / programmes, entertainment shows TV dramas, the negotiation of territorial‐based and drama. A few examples include: windows is the main tool to help guarantee pre‐ financing (via pre‐sales) and to maximise the • TF1’s newscasts are available for cross‐ returns from the exploitation of content across border online streaming, on‐demand to all platforms, while giving the consumer a range of French‐speaking audiences in Europe and options as to how and when to view the content. worldwide; Monetisation of transfrontier demand • The international edition of Sky News is available for cross‐border live streaming; 4.29. Internet‐based distribution provides more opportunities for the circulation of national • The own‐produced content on Mediaset’s audiovisual production, contributing to the catch‐up TV service Video Mediaset is largely development of a “long tail” but only if available across borders; measurable demand can be identified and • Similarly, RTL Television programming monetised. Although not all TV content is available through the four catch‐up TV available across borders, licensing is not services RTL Now, VOX Now, Super RTL Now necessarily an obstacle to cross‐border and RTL II Now is, in general not geo‐ distribution. Rather, the existence of a critical blocked; mass of identifiable demand to sustain a business case is. • Most of the programming on the online catch‐up TV service of TV Markiza in 4.30. Where original‐language cross‐border VoD is Slovakia is available for viewing across the concerned a number of factors have to be taken EU; into account, including:
• Some unencrypted programmes broadcast • Real demand for content (minorities, on CANAL+ are also available on the migrants, expatriates, etc.), must be www.canal+.fr website without any quantified to build a business case. These geographic restriction; aspects have recently been the subject of an in‐depth analysis carried out for DG Internal • MTG’s Swedish FTV catch‐up TV services Market at the European Commission 5. The (TV3, TV6 and TV8 Play) offer several study includes comprehensive data on programmes for cross‐border streaming consumer demand, quantitative and without geo‐protection. qualitative analysis and some interesting
hypothetical modelling; Commercial factors for online • Technical distribution issues (ability to crossborder distribution of address the offer to individual demand audiovisual content pockets, payment systems, identification systems, infrastructure and technical support, etc.); 4.28. As Chapters 2 and 3 have demonstrated, online distribution of digital audiovisual content is not • Economic issues (e.g. an operator wanting to necessarily a stand‐alone market. In fact, Internet target only a specific demand pocket within distribution should not be considered in isolation a given country will probably have to acquire but as part of a multiplicity of audiovisual rights for a whole territory);
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• High marketing costs. adaptation (of both content and associated meta‐ data) and protection of content (up to one‐third 4.31. For existing free‐to‐view online video offers that of the total budget, on aggregate). Marketing are not geo‐blocked (excluding those in English), expenditure, which is also strictly local – from the share of video requests coming from brand development to subscriber acquisition and European non‐national IP addresses, excluding product promotion – will account for over one‐ countries or territories where the language of the fourth of the total budget. service/content is spoken as a mother tongue is marginal, and typically in very low single‐digit 4.34. Other technical expenses, like platform figures. Nor would a shift to pan‐EU or multi‐ development (which is not necessarily local), territorial distribution facilitate the model of costs for bandwidth and storage and operating original‐language cross‐border VoD offered to costs (general and administrative and overheads) demand pockets, it would rather be the account in aggregate for more than 20% of the regionalisation of an existing national title which total. Finally, customer support and after sales would be relevant in this case. services are also a large component of the total budget for the service, accounting for around 4.32. The creation of multi‐territory or pan‐EU VoD one‐fifth of the total. platforms also faces obstacles which are not related to problems surrounding licensing of rights, but rather: FIGURE 21 – BREAKDOWN OF FIXED AND VARIABLE COSTS BY TYPE FOR A PAN‐ • Cultural specificities and the need for EUROPEAN VOD SERVICE (EXCLUDING editorial localisation (dubbing, subtitling, RIGHTS ACQUISITION COSTS) etc.); (%)
• Localisation of distribution. Need for Platform development investment in local marketing, promotion and management and communication (targeted investment in 1% Marketing Storage / distribution and marketing is essential to any 11% bandwidth producer or distributor in order to promote 27% and sell content in any country). There are 9% Operating costs (G&A, no or very few economies of scale here. It is overheads, etc.) interesting that existing multi‐territory VoD services still operate on a national basis.
4.33. Excluding the costs associated with rights 19% 32% acquisition, a company operating a multi‐country CRM Localisation / VoD platform will have a complex cost structure, services adaptation / meta‐data adaptation / content protection similar to that shown in Figure 21 and one in
which the national components inevitably play a major role. As pointed out above, the heaviest Source: e‐Media Institute estimates. cost components relate to localisation,
NOTES TO CHAPTER 4 1 Sky Sport News was launched in Germany and Austria in December 2011. 2 Source: e‐Media Institute on SES Astra survey data from 35 countries (2011). The only North African countries covered by the survey are Algeria, Morocco and Tunisia. 3 Source: Astra and Eutelsat (November 2011). 4 Source: CanalSat (November 2011). 5 Plum Consulting, The economic potential of cross‐border pay to view and listen audiovisual media services, March 2012.
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APPENDIX I: A growing number of linear and nonlinear services in Europe
Linear and nonlinear audiovisual This is four times the amount offered by the same services in France operators three years ago. An increasing number of such services are now offered through OTT TV
on a variety of Internet‐connected devices as well as on personal mobile devices. For instance, all A.1. In France, commercial broadcasters now offer as many as 282 linear TV channels and PPV services commercial FTA channels offered nationwide on nationwide on all digital platforms (DTH satellite, DTT have a Web service or at least a section of cable, IPTV and DTT). This is almost 80 channels their TV portals offering programming in linear more than those available in 2006 and over two and non‐linear mode, accessible on the Web via times those offered by the same operators ten PCs. Furthermore, commercial broadcasters offer years ago (107). as many as 31 non‐linear services on TV, via networks allowing for a return path (cable, IPTV) and another nine TVoD services on all platforms. A.2. Out of the 282 domestic linear services offered by commercial broadcasters, 63 (22%) are FTA and Of these, 28 non‐linear services and five TVoD 215 (76%) are pay‐TV channels, which add to four services are managed by national commercial PPV services. broadcasters (January 2011).
FIGURE 23 – NUMBER OF NON‐LINEAR FIGURE 22 – LINEAR TV SERVICES OFFERED AUDIOVISUAL SERVICES OFFERED BY BY COMMERCIAL NATIONAL BROADCASTERS COMMERCIAL NATIONAL BROADCASTERS IN IN FRANCE (2001‐2006‐2011) AND FRANCE (2008‐2011) BREAKDOWN BY TYPE (2011) (UNIT) (UNIT AND %)
41 282 PPV 1% 2011 Free‐to‐air 204 22% TOTAL 107 282 CHANNELS 76%
2001 2006 2011 Pay‐TV 10
Source: e‐Media Institute on MAVISE, European 2008 2011 Audiovisual Observatory data and other sources. Note: Data include all commercial channels established Source: e‐Media Institute estimates on CNC data. and available in France. Data for 2011 retrieved on Note: data include non‐linear services provided by 17/10/2011. commercial broadcasters and exclude non‐linear
services provided by telecom operators, cable TV A.3. According to e‐Media Institute, in France more operators, public broadcasters, local and regional TV than 40 free and paid non‐linear video services operators and Internet companies. Data for 2011 are offered by commercial national broadcasters retrieved on 17 October 2011. across the Internet, IPTV and cable TV networks.
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APPENDIX I | A growing number of linear and non‐linear services in Europe
Linear and nonlinear audiovisual in Slovakia its pan‐regional VoD service Voyo, services in Slovakia which was already available in the Czech Republic, Croatia and Romania. Voyo.sk offers
content from the TV Markiza and Doma libraries, sport and music events, live streaming and A.4. The smaller Slovakian market is dominated by foreign‐based TV operators, especially in the pay‐ previews of TV broadcasts. Furthermore, Voyo TV segment. Commercial broadcasters offer a offers a range of foreign and domestic movies and total of 47 domestic linear services across all TV series on a TVoD basis. CME’s main platforms, a net growth of 14 during the past five competitor, TV Joj, also offers Web live streaming years and 123% since 2001, when only 21 linear and a selection of multi‐genre on‐demand services were offered by national commercial programming. broadcasters. FTA represents the vast majority of the offer, with 39 services as most of the pay‐TV FIGURE 25 – NUMBER OF NON‐LINEAR services available in the market are localised AUDIOVISUAL SERVICES OFFERED BY versions of channels based in the UK, France and COMMERCIAL NATIONAL BROADCASTERS IN the Netherlands or in neighbouring Czech SLOVAKIA (2008‐2011) Republic, Romania and Hungary – only eight pay‐ (UNIT) TV channels are based in Slovakia. Over one third of the 47 channels are also available outside 7 Slovakia’s borders.
FIGURE 24 – LINEAR TV SERVICES OFFERED BY COMMERCIAL NATIONAL BROADCASTERS IN SLOVAKIA (2001‐2006‐2011) AND 2 BREAKDOWN BY TYPE (2011) (UNIT AND %)
47 2008 2011 Pay‐TV 2011 33 17% Source: e‐Media Institute. 21 TOTAL Note: Note: data include non‐linear services provided by 47 commercial broadcasters and exclude non‐linear CHANNELS services provided by telecom operators, cable TV 83% operators, public broadcasters, local and regional TV operators and Internet companies. Data for 2011 2001 2006 2011 Free‐to‐air retrieved on 17 October 2011.
Source: e‐Media Institute on MAVISE, European Audiovisual Observatory data and other sources. Linear and nonlinear audiovisual Note: Data include all private channels established and services in Sweden available in Slovakia. Data for 2011 retrieved on 17/10/2011. A.6. As of October 2011, there were 82 commercial A.5. In Slovakia, the main commercial broadcaster in domestic linear TV services across established the market, Central Media Enterprises (CME), broadcast platforms in Sweden, 19 more than at which operates the channels TV Markíza and the end of 2006 and more than twice those Doma, offers a free and a paid service on the available ten years ago, making up for an average Web. In addition, in August 2011, CME launched annual growth rate of over 7%. Of the 82
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APPENDIX I | A growing number of linear and non‐linear services in Europe
domestic linear services offered nationwide by 9 Play), while C More Entertainment (majority‐ private commercial broadcasters in 2011, 20 owned by the TV4 Group with a minority stake (24%) are FTA channels and 62 (76%) are pay‐TV held by Telenor) has created Canal+ Play, a SVoD services; 18 are also available in foreign markets, service offering films and premium TV content, as normally the neighbouring Nordic countries or well as an on‐demand sports offer (including live the Baltic republics. events).
FIGURE 26 – LINEAR TV SERVICES OFFERED FIGURE 27 – NUMBER OF NON‐LINEAR BY COMMERCIAL NATIONAL BROADCASTERS AUDIOVISUAL SERVICES OFFERED BY IN SWEDEN (2001‐2006‐2011) AND COMMERCIAL NATIONAL BROADCASTERS IN BREAKDOWN BY TYPE (2011) SWEDEN (2008‐2011) (UNIT AND %) (UNIT)
82 15 Free‐to‐air 63 2011 24% 40 TOTAL 82 CHANNELS 76% 5
2001 2006 2011 Pay‐TV
Source: e‐Media Institute on MAVISE, European Audiovisual Observatory data and other sources. 2008 2011
Note: Data include all private channels established and available in Sweden. Data for 2011 retrieved on Source: e‐Media Institute. 17/10/2011. Note: data include non‐linear services provided by commercial broadcasters and exclude non‐linear A.7. The number of non‐linear audiovisual services services provided by telecom operators, cable TV offered by commercial broadcasters nationwide operators, public broadcasters, local and regional TV has grown threefold from five in 2008 to 15 in operators and Internet companies. Data for 2011 retrieved on 17 October 2011. 2011.
A.8. TV4 offers ad‐supported catch‐up TV programming from its main FTA services through the TV4 Play and Sjuan Play services, in addition to a SVoD service called TV4 Play Premium. Both services are offered through a variety of third‐ party platforms (online, DTT, satellite, IPTV) and devices (Internet‐connected STBs, smartphones, tablets, connected TVs and game consoles). Similarly, Modern Times Group (MTG) offers branded online catch‐up TV services for its FTA channels (TV3 Play, TV6 Play and TV8 Play) and Viaplay, a paid‐for VoD service linked to the group’s Viasat range of pay‐TV packages. ProSiebenSat.1 Media offers catch‐up TV services for both its FTA channels (Kanal 5 Play and Kanal
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APPENDIX II: Broadcasters’ VoD services Note: information about the services described in this appendix is correct as of 19 March 2012.
BSkyB: the Sky Anytime+ SVoD and Sky Go to content from partner channels, such as MTV, multiscreen services Discovery, FX, History, Disney, UK TV and National Geographic Channel. To further expand the range of high‐quality content available on Sky Anytime+, Sky has also reached new agreements with the BBC and ITV.
A.13. Launched in July 2011, Sky Go is BSkyB’s new A.9. As its brand name suggests, Sky Anytime+ falls in integrated multiscreen and mobile TV offer. The the non‐linear service category. Launched in service brings together and expands Sky’s long‐ October 2010, Anytime+ is BSkyB’s first pull VoD standing online TV service, Sky Player, and Sky’s service, and one of the first true VoD services to mobile TV application, Sky Mobile TV. be launched by a Pay‐TV operator on satellite STBs in Europe. A.14. Unlike its predecessors, and in a similar vein to Sky Anytime+, Sky Go is a free service add‐on for A.10. The service, one of the leading of its kind in the existing subscribers, allowing TV customers to UK in terms of offer, complements Sky’s existing watch live linear channels and selected on‐ push VoD service, Sky Anytime, and both are demand content in line with their subscription integrated into the Sky EPG, allowing users to while on the move in the UK and Ireland. With Sky move seamlessly from linear to non‐linear Go, Sky customers are able to watch live and on‐ consumption within the same environment. demand video content from their PCs, mobile phones (Apple’s iPhone, iPad, iPod Touch and A.11. Sky Anytime+ was launched as a free add on for selected Android smartphones), or Xbox 360 Sky TV customers equipped with a Sky+HD box gaming consoles via a fixed broadband or Wi‐Fi (DVR HD compatible STB) and Sky’s broadband Internet connection. Internet access service (Sky Broadband Everyday Lite or Unlimited). To help even more customers A.15. On mobile platforms through Sky Go, subscribers enjoy the service, Sky is extending the reach of now have access to Sky 1, Sky Atlantic, Sky Living, Sky Anytime+ by making it available to all Sky+HD Sky Arts 1, all five Sky Sports channels, ESPN and homes with an Internet connection, across all Sky News. Live and on‐demand film content from broadband providers. This means more than 5 Sky Movies channels is also included. On PC, Mac million homes will soon be able to access the and Xbox, the offer comprises a range of live comprehensive video on demand service. The channels, including all five Sky Sports channels, extension of the service builds on the more than Sky Movies, Sky News, Sky 1, Sky Atlantic, Sky 1.2 million Sky Broadband homes that already use Arts, MTV, Disney, G.O.L.D., Nickelodeon, the service. NatGeo, History, Eden and ESPN. The Sky Go portal also integrates the Sky Anytime+ service, A.12. VoD content available through Anytime+ depends giving access to the on‐demand library outlined on the customer’s TV subscription and provides above (including an extensive library of film titles access to a wide range of on‐demand content from Sky Movies), and the Sky Box Office PPV including movies, entertainment, documentaries catalogue. Sky Sports’ brand new dedicated and drama ‘box sets’. In addition to programmes Formula One racing channel will be added to Sky from Sky’s own channels the service offers access Go platforms from March.
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APPENDIX II | Broadcasters’ VoD services
A.16. The launch was a success and take‐up by Sky demand platforms with catch‐up TV services. RTL customers is rising fast, with the company Now, VOX Now and Super RTL Now offer a seven‐ reporting that millions of users were attracted to day catch‐up for full‐length prime‐time content the service across a wide range of Internet and 3G and a 30‐day catch‐up for full‐length daytime connected devices in the first six months since content. In January 2012, RTL Interactive launch. Sky has also announced that it will launched – together with RTL II – the newest continue to develop Sky Go as a bonus service for member of the Now‐branded family of services, existing Sky TV customers, widening the range of RTL II Now, which offers more than 1,300 hours of live channels and on demand content, and full‐length programming on the platform free of extending the service onto new devices and charge. platforms. A.20. These services allow access to programmes A.17. Sky also recently announced plans to launch a broadcast on RTL Television channels in Germany, new service allowing customers to watch some of such as Good Times, Bad Times, Alarm for Cobra its most popular content over the Internet. 11 – The Highway Patrol, CSI: Miami, all the news Launching in the first half of 2012, the new and magazine programmes and many more service will provide instant and simple access to a shows. In addition, N‐TV has recently launched a range of Sky content, including hundreds of films new service called N‐TV Digitaltext, based on the from Sky Movies. Giving consumers even more HbbTV (Hybrid broadcast broadband TV) choice and flexibility, the service will be available standard, which offers viewers the latest news to anyone in the UK with a broadband from politics, business, the stock market, sport, connection. The launch of a new Internet TV panorama and entertainment. service will complement Sky’s existing pay‐TV services and open up a wider opportunity to bring A.21. RTL Now, VOX Now and Super RTL Now also offer its content to more consumers. a transactional VoD service, with both “pre‐TV” services (where viewers can access content before it airs) and an archive service for RTL Group (RTL Television, Germany): programmes that have exited the catch‐up the RTL Now, Vox Now, Super RTL Now window. After negotiating new agreements with and RTL II Now catch‐up TV and VoD rights holders, RTL Interactive also made services blockbuster movies available on‐demand at RTL Now and VOX Now.
A.22. The combined audiences of these services reached up to 27.2 million video views per month
in 2011. In the same year, the total video views A.18. RTL Group has been recently expanding its range for complete episodes via RTL Now (including the of online TV and VoD offers across Europe. RTL Now iPhone App) and VOX Now was Flagship catch‐up TV and VoD services include RTL respectively 203 million and 38 million. The total Now in Germany, M6 Replay in France, RTL XL in volume on offer on all the Now websites (for both The Netherlands and RTL Most in Hungary. In free‐to‐view and Pay‐TV models) is today almost 2010, RTL Group’s online platforms and video‐on‐ 15,000 titles, totalling more than 10,000 hours of demand offers across Europe collectively video content. generated more than 1.4 billion video views of professionally produced content, up 46% on A.23. Interestingly, programmes offered through the 2009. NOW websites are not geo‐blocked unless this is required by the underlying contractual agreement A.19. In Germany, RTL Television’s core channels have with rights holders, which means that German‐ quickly succeeded in establishing their own on‐ speaking audiences across Europe can already
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access a large part of the programming (including la demande and CANALSat à la demande. These nearly all locally produced content) from the services allow users to access programmes from three channels in catch‐up TV mode. CANAL+ and CANALSat channels, including magazines, feature films, dramas, documentaries, A.24. In Germany, RTL Television also offers an app for series and children’s shows, up to one month the iPhone and iPod Touch, which was the first after their original broadcast. German channel app to offer 24‐hour live TV (although certain programmes are still excluded CANAL+ à la demande launched in 2008 and is from this service). The free iPhone app from available to satellite subscribers via Internet‐ Super RTL’s Toggo brand, directed at children enabled STB, on all the country’s French major aged 6 to 13, was downloaded more than 100,000 IPTV platforms (Freebox, Orange, BBox and times in only three months. Neufbox), on cable TV (Numéricâble), via the Internet, the Xbox 360 game console, and also as A.25. RTL Germany also manages the online video an app for iPhone and iPad devices. The service community Clipfish.de, launched in June 2006. allows users to access the programming of the This portal offers user‐generated videos and CANAL+ flagship premium channel and the “Les enables users to access highlight clips of popular Chaînes CANAL+” premium bouquet. Similarly, German TV formats such as Ich bin ein Star‐Holt CANALSat à la demande allows users to access mich hier raus!, Deutschland sucht den Superstar, programmes from 29 channels of CANALSat’s Das Supertalent, Der Bachelor, Bauer sucht Frau thematic package (Cine+, Eurosport, Boomerang, and X‐Factor. In cooperation with Sony BMG Disney Channel, Disney XD, Cartoon Network, Music Entertainment and Universal Music Group, National Geographic Channel, etc.) and is Clipfish also gives access to a vast music video available on the satellite TV platform, on the IPTV catalogue. In June 2011 the service attracted 2.94 and via PC. million monthly unique users, with a reach of 6% of total Internet audience, generating 35.3 million A.27. The operator also offers two VoD services. The monthly contacts (source: AGOF). The Clipfish first is its long‐standing TVoD service CANALPlay, apps (available for iPhone, iPad, iPod Touch and which was launched in 2005 and allows users to Android smartphones) provide access to access around 8,500 titles, including some 4,000 professionally produced premium content, movies in HD. Users can watch content in two including more than 63,000 videos. A user‐ ways: rent in streaming (prices from €1.99) or friendly navigation search system ensures easy download‐to‐own (prices from €7.99). access to 13,000 clips from RTL Television and Vox TV highlights in the TV category alone. A.28. The CANALPlay selection is divided into five main genre categories: Movies, Series, Kids, Manga and Adult. The service reaches around 200,000 unique Canal+ Group: the non‐linear users per month and records between 7 and 8 services CANAL+ à la demande, CANALSat million videos views per year. Since its launch, the à la demande, CANALPlay, CANALPlay video service has recorded around 25 million Infinity, and the personalised views and has reached more than 1.5 million recommendation engine Eureka unique users.
A.29. CANALPlay is available on the Internet, on some IPTV platforms, on Numéricâble’s cable TV network, on LG Internet‐connectable Blu‐ray Disc
players, via Microsoft’s Xbox 360 games console, A.26. The French pay‐TV operator CANAL+ Group offers and on selected CANAL+/CANALSat STBs. two free catch‐up TV services included in the subscription to its pay‐TV subscribers: CANAL+ à A.30. Furthermore, the French pay‐TV operator has
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APPENDIX II | Broadcasters’ VoD services
recently launched its SVoD offer, CANALPlay photo gallery, which can be shared directly with Infinity. The service allows subscribers to have users’ contact lists via social networks or file‐ unlimited access to a catalogue of several sharing applications. thousand movies and 700 TV episodes available each month for €9.90 per month. A.34. Launched as one of Italy’s first all‐news websites, ten years on TGCOM’s Web portal generated over A.31. CANALPlay Infinity is initially exclusively offered 4.75 billion page views, up by 100% year‐on‐year, to SFR’s NeufBox IPTV subscribers before being with a record 83% growth in the number of extended to other IPTV platforms (Free, Bouygues unique users (2011 totals). TGCOM’s new Telecom), the Apple iPad and connected devices smartphone and tablet app was also a great such as the Xbox 360. It has also been recently success, with over 1.3 million downloads during launched as an open Internet service. the first month since launch. The service, which was revamped in March 2011, has a male‐skewed A.32. In addition, CANAL+ has introduced a new free (58% of total users) and young audience (18‐34 recommendation service for its CANALSat year olds represent 38% of total users). subscribers. Known as Eureka, the service recommends to each user a customised selection A.35. SportMediaset attracted 5.4 million unique of six programmes every night (including from monthly users on average (+12% in the year), who non‐linear services) based on analysis of the accessed 194 million pages, in the first seven subscriber’s viewing behaviour during the months of 2011. Overall, in July 2011, Mediaset’s previous 15 days. The service will be available to online properties attracted 21 million unique subscribers on all connectable platforms where users, totalling 719 million page views, up 81% on the thematic package is available, including the July 2010, with TGCOM accounting for 66% of the CANALSat satellite and IP STBs, third party IPTV total. boxes, the Xbox 360 console, Apple iOS and Android smartphones, and Apple’s iPad. A.36. Currently, the TGCOM Web portal is completely integrated with TV, as 15 short videos from the service are screened every day on the Mediaset Group: the TGCOM24 all‐news broadcaster’s channels. However, at the end of website and TV channel, the Video November 2011, Mediaset launched TGCOM24 as Mediaset free catch‐up TV service and the a linear TV channel, broadcasting 24‐hour news Premium Play non‐linear OTT TV service programmes on the country’s digital terrestrial TV platform. It also merged TGCOM’s editorial office into the NewsMediaset main office and rebranded the Web service to TGCOM24 to match the newly launched channel. The move
represents a milestone in the Italian TV market, as A.33. Italy’s Mediaset launched its online news video TGCOM24 is the first web‐native video service to offer TGCOM in 2001. TGCOM provides users with become a thematic channel on TV. The channel is political, economic, national and international also accessible on PCs, tablets and smartphones, news, as well as information relating to TV and is also available for live streaming outside content available on linear programming, while Italy (see Chapter 4). A team of more than 100 sports news programmes are available on the journalists produce the daily news and news SportMediaset site, edited by the broadcaster’s updates, and prepare press reviews and special sports staff. The news service is currently reports. available via the Internet, radio, teletext, live TV broadcast, as well as on Apple iOS and Android A.37. Launched in January 2010, Video Mediaset is the smartphones. TGCOM also provides a fully group’s pure video property and catch‐up TV customisable homepage and access to a large platform, also one of the leading websites in the
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broadcaster’s portfolio. The service allows online of services is the Play‐branded FTV catch‐up TV users to watch most of the broadcaster’s services, which are offered online across most of programmes in either long or short‐form video. the countries where MTG offers FTA channels, Since October 2010, video content from all including Scandinavia and the three Baltic Mediaset's own productions have been republics. The second family of services is the exclusively available on this service, which also Viaplay SVoD and TVoD service, part of the offers a large portion of the network’s group’s Viasat Scandinavian pay‐TV offer. programming for cross‐border access. A.42. The major example in the first category is the A.38. In November 2011, Mediaset launched Premium catch‐up TV service of the group’s flagship Free‐ Play, merging its Premium On Demand push VoD To‐Air brand TV3, TV3 play, which is available in and the Premium Net TV pull VoD services localised versions in Sweden, Norway, Estonia, (launched in November 2009 and February 2011, Latvia and Lithuania. These add to sister services respectively) in Italy’s most complete paid OTT TV such as TV6 and TV8 play services in Sweden, and platform yet. The service, which is available on TV Viasat 4 play in Norway. MTG’s FTV catch‐up TV through connectable DTT boxes, via Web through service offer a library mainly consisting of PCs and other devices, such as Microsoft’s Xbox acquired programming and own 360 game console, can be accessed for free by productions/local programme formats. Mediaset Premium pay‐TV subscribers. A.43. The Viaplay pay on‐demand service, which was A.39. Premium Play offers a wide range of content in launched as Viasat OnDemand in May 2007, is linear and non‐linear mode, including HD and 3D offered with a very similar proposition across the formats, with over 1,000 free and paid titles in Viasat Scandinavian footprint in four localised TVoD and SVoD, and catch‐up TV. The line‐up versions in Denmark, Finland, Norway and includes films for rental (Cinema Première) plus Sweden. around 200 films in SVoD with several first releases on pay‐TV, cartoons, documentaries, TV A.44. Viaplay enables subscribers to use a single ID and series, football – including the complete archive password to access Viasat pay‐TV content on any of all matches broadcast on the Premium Calcio Internet‐connected device. The service offers channels and live simlucast, catch‐up TV of access to on‐demand premium content (films, live Mediaset’s FTA channels, extra thematic VoD and sport events, TV series in addition to catch‐up 24‐hour live Big Brother. services of free‐TV channels) as a free add‐on and complement to the main Viasat pay‐TV package A.40. The platform is network independent and or on a standalone basis. It is available on DTH completely open, as it can be accessed using both recordable STBs, connected TVs (for instance, all proprietary and industry‐standard connectable LG broadband‐connected and NetCast‐enabled TV DTT boxes and a broadband line from any ISP. sets) and via PC.
A.45. Viaplay is also available through an application Modern Times Group: the Play‐branded that developed for Android enabled smartphones free‐to‐view catch‐up TV and the Viaplay and tablets, but content can also be watched on family of VoD services iPhone and iPad through the browser.
A.41. MTG offers two main families of non‐linear services on a multi‐territory basis. The first type
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APPENDIX II | Broadcasters’ VoD services
Sky Deutschland: the Sky Anytime push in April 2011. With Sky Go, customers are able to VoD and Sky Go multi‐device pull VoD access their programmes everywhere they want, services whether at home, on the PC, a second TV set or on mobile devices like the iPad, iPhone, or the iPod Touch. Since the end of last year, Sky Go is also available on Microsoft’s Xbox 360 game console.
A.46. Sky is all about entertaining, exciting and inspiring A.50. Sky Go on the Web, which was launched as a part customers with a completely new TV experience. of the Sky Go service, offers a selection of The Sky brand stands for an unrivalled choice of programmes from the Sky Film, Sky Sport and Sky television entertainment, high‐quality Fußball Bundesliga packages, both live and on‐ programming that viewers cannot find elsewhere, demand, including hundreds of exclusive sports innovative services and high satisfaction levels events and movies each month, and over 10,000 resulting from a strong customer service – all at hours of programming throughout the year. great value. The core business of Sky is premium pay television. The company offers a wide range A.51. Sky Go on the iPad includes live viewing of sports of programs including current films, new TV series channels Sky Sport News HD, Sky Sport 1, Sky and live sports. Sky has set standards with its Sport 2, Sky Sport Austria and Sky Fußball HDTV offering that currently comprises more Bundesliga, showing all matches of the first and than 40 channels, including the first 3D channel in second football Bundesliga, the UEFA Champions Germany and Austria. League, the UEFA Europa League and the DFB Pokal, as well as Formula One, golf and tennis A.47. The multiplatform strategy of pay TV provider Sky when connected via WiFi. iPad users also have Deutschland with its innovative VoD service Sky access to movie trailers, sports news as well as Anytime and multi‐device service Sky Go are results and tables. Sky Go on the iPhone and iPod representing the future of TV entertainment Touch provide access to the Sky Sport News HD, already now. Sky Sport 1, Sky Sport 2 and Sky Sport Austria channels via WiFi and 3G. Sky subscribers can A.48. Sky Anytime, which was launched in August 2011, register the Sky Go offering for up to four devices enables customers to access selected movies as and use the service on two devices at the same well as a media library featuring documentaries time. and sports programs, including HD, on an on‐ demand basis. Customers need a Sky+ HD hard disk receiver, an internet connection is not required. New content is downloaded overnight directly on the Sky+ DVR, providing new content that is updated in regular intervals. The selection of the content depends on the subscription of each customer. Sky Anytime is embedded in an improved EPG for Sky+ which makes access to the Sky program even more intuitive. Sky Anytime is available for free for all customers equipped with a Sky+ DVR.
A.49. In addition, all Sky Deutschland subscribers have the option to order Sky Go and experiencing content included in their subscription on multiple devices. The mobile service Sky Go was launched
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APPENDIX III: Endnotes
1. The total turnover of the editorial sector is • Non‐video Internet and mobile content: calculated as the sum of the turnovers of the consumer expenditure for non‐video following sectors. editorial content, advertising expenditure on Internet and mobile (display advertising, • Television: consumer expenditure on TV Search Engine advertising, classified / licence fees, advertising expenditure on directories etc.) excluding advertising free‐to‐air and pay‐TV channels, consumer expenditure on video platforms. expenditure on pay‐TV services, public subsidies to TV broadcasters. 2. Figures are calculated, on a country‐by‐country basis, based on data collected from operators (i.e. • Video over the Internet and mobile radio and TV broadcasters, telecom operators, platforms: consumer expenditure for linear publishers etc.) and relevant sources (i.e. national and non‐linear TV services, advertising and international statistics offices, national and expenditure on video platforms; international professional associations, Media Authorities, Competition Authorities, professional • Cinema: consumer expenditure for cinema publications on media markets etc.) admission (gross box office), advertising
expenditure on cinema. Total turnover has been calculated on data • Home Video: consumer expenditure on collected from operators and relevant local and purchasing or renting home video titles international sources. ALL THE COUNTRIES ‐ (VHS, DVD, Blu‐ray); Among others: EADP (European Association of Directory Publishers), EAO (European Audiovisual • Newspaper and magazine (consumer and Observatory), EBU (European Broadcasting B2C) publishing: consumer expenditure for Union), ENPA (European Newspaper Publishers’ copies (including subscriptions), advertising Association), Eurostat, FEP (Federation of expenditure on newspapers and magazines, European Publishers), FIPP (International public subsidies to publishers; Federation of Periodical Press), IAB Europe (Interactive Advertising Bureau), IFPI • Directories: advertising expenditure on (International Federation of the Phonographic directories (both on‐paper and on‐line); Industry), IVF (International Video Federation), WAN (World Association of Newspapers and • Radio: consumer expenditure for TV licence News Publishers). FRANCE ‐ Among others: ARCEP fee, advertising expenditure on radio (Autorité de Régulation des Communications channels, public subsidies to radio Electroniques et des Postes), CNC (Centre broadcasters; National de la Cinématographie), CSA (Conseil • Music: consumer expenditure for physical Supérieur de l'Audiovisuel), DDM (Direction and digital music products; générale des médias et des industries culturelles), Gfk France, IAB France (Interactive Advertising • Videogame: consumer expenditure for Bureau), IREP (Institut de Recherches et d’Études physical and online game titles (excluding Publicitaires), SEVN (Syndicat de l'Edition Vidéo expenditure on hardware); Numérique), SNA (Syndicat National des Editeurs d'Annuaires), SNE (Syndicat National de l'Edition), • Off‐line multimedia: consumer expenditure SNEP (Syndicat National de l'Edition for physical titles (educational, reference, Phonographique). GERMANY ‐ Among others: entertainment etc.); ALM (Arbeitsgemeinschaft der
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APPENDIX III | Methodological notes
Landesmedienanstalten in derBundesrepublik 3. Cisco System’s definition of Internet video Deutschland), BDZW (Bundesverband Deutscher categories are as follows. Zeitungsverleger, Börsenverein des Deutschen Buchhandels, Bundesverband Musikindustrie, BIU • Short form: User‐generated video and other (Bundesverband Interaktive video clips generally less than 7 minutes in Unterhaltungssoftware), BVV (Bundesverband ‐ length; Audiovisuelle Medien), Deutsche Fachpresse, FFA • Long‐form: Video content generally greater (Filmförderungsanstalt), GEZ than 7 minutes in length; (Gebühreneinzugszentrale der öffentlich‐ rechtlichen Rundfunkanstalten in der • Internet video to TV: Video delivered Bundesrepublik Deutschland), OVK (Online‐ through the Internet to a TV screen, by way Vermarkterkreis), VDAV (Verband Deutscher of an Internet‐enabled set‐top box or Auskunfts‐ und Verzeichnismedien), VDZ equivalent device, Internet‐enabled TV, or (Verband Deutscher Zeitschriftenverleger), ZAW PC‐to‐TV connection; (Zentralverband der deutschen Werbewirtschaft). ITALY ‐ among others: AESVI (Associazione Editori • Live TV: Peer‐to‐Peer TV (excluding P2P Software Videoludico Italiana), AGCOM (Autorità video downloads) and live television per le Garanzie nelle Comunicazioni), ANES streaming over the Internet; (Associazione Nazionale Editoria Periodica Specializzata), AIE (Associazione Italiana Editori), • Mobile video: All video that travels over a ANICA (Associazione Nazionale Industrie 2G, 3G, or 4G network. Cinematografiche Audiovisive), Confindustria • Other categories include Internet PVR and Servizi Innovativi e Tecnologici, FIEG (Federazione ambient video. Italiana Editori Giornali), FIMI (Federazione Industria Musicale Italiana), IAB Italia (Interactive Advertising Bureau), Nielsen Media Research, SIAE (Società Italiana Autori Editori), Univideo (Unione Italiana Editoria Audiovisiva). UK – among others: Advertising Association, Book Marketing, BPI (British Phonographic Industry), BVA (British Video Association), DPA (Data Publishers Association ), EADP (European Association of Directory Publishers), EAO (European Audiovisual Observatory), EBU (European Broadcasting Union), ENPA (European Newspaper Publishers’ Association), FEP (Federation of European Publishers), FIPP (International Federation of Periodical Press), IAB UK (Interactive Advertising Bureau), IFPI (International Federation of the Phonographic Industry), IVF (International Video Federation), MobileSQUARED, NPA (Newspaper Publishers Association), NS (Newspaper Society), Ofcom (Office of Communications), PA (Publishers Association), PPA (Professional Publishers Association), UK Film Council, UKIE (UK Interactive Entertainment Association), WAN (World Association of Newspapers and News Publishers), WARC (World Advertising Research Centre).
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References
ACT ‐ Association of Commercial Television in Europe, Annual Report 2010, November 2010;
ACT ‐ Association of Commercial Television in Europe, Content and Consumers: How Commercial Broadcasters Have Updated Their Business Models For The Online World, May 2011;
ACT ‐ Association of Commercial Television in Europe, TV Monitor, various editions;
CNC ‐ Centre National de la Cinématographie, Baromètre de la télévision de rattrapage (TVR), August 2011;
Cisco Systems, Visual Networking Index: Forecast and Methodology, 2010‐2015, June 2011;
Communications Chambers, Creative UK. The Audiovisual Sector and Economic Success, 2011; comScore, The comScore 2010 Europe Digital Year in Review, February 2011;
FIPP, World Magazine Trends 2010‐2011;
Envisional, The State of Digital Piracy, January 2012;
European Audiovisual Observatory and Direction du développement des medias, Video on demand and catch‐ up television in Europe, October 2009;
European Commission, Creative Content in a European Digital Single Market: Challenges for the Future, A Reflection Document of DG INFSO and DG MARKT, October 2009;
European Commission, A Digital Agenda for Europe, August 2010;
European Commission, Single Market Act, April 2011;
European Commission, Green Paper on the online distribution of audiovisual works in the European Union: opportunities and challenges towards a digital single market, Brussels, July 2011;
Eutelsat Communications, Eutelsat Cable & Satellite TV Survey 2010, Data collected Q1‐Q2/2010;
IDATE, World Television Market, August 2010;
IFPI, Recording Industry in Numbers 2011. The definitive source of recorded music market data, 2011;
KEA European Affairs, Study concerning multi‐territory licensing for the online distribution of audiovisual works in the EU, Stakeholder workshop, Brussels, June 2010;
Ofcom, Communications Market Report: UK, August 2011;
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References
Plum Consulting, The economic potential of cross‐border pay to view and listen audiovisual media services, March 2012;
PricewaterhouseCoopers, Global entertainment and media outlook: 2011‐2015. Industry Overview, 12th annual edition, June 2011;
SES Astra, Astra Satellite Monitor 2010;
The Economist, In praise of television, the great survivor, 29 April 2010;
WAN‐IFRA ‐ World Association of Newspapers and News Publishers, World Press Trends 2010.
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Glossary
App (Application) ‐ Computer software designed to help the user to perform specific tasks. Apps can be designed to run on specific devices (smartphones, tablet computers, connected TVs, etc.)
ATAWAD (Anytime / Anywhere / Any‐device) – Defines the way broadcasters and other content rights’ owners increasingly offer content to the audience in a non‐linear on‐demand mode (anytime); through multiple networks, including mobile (anywhere); and on an increasing number of enabled devices.
AVMS (Audiovisual Media Services) ‐ As defined by the Audiovisual Media Services Directive (2007/65/EC), is “a service [...] which is under the editorial responsibility of a media service provider and the principal purpose of which is the provision of programmes in order to inform, entertain or educate, to the general public by electronic communications networks [...]. Such an audiovisual media service is either a television broadcast [...] or an on‐demand audiovisual media service [...], and/or audiovisual commercial communication”.
Catch‐up TV – The making available of TV programmes for a period of days (generally seven to 30) after the original broadcast by broadcasters for on‐demand viewing. Also identifies the related right.
Connected TV or Smart TV ‐ A TV set which integrates in the basic features of modern TV sets the Internet and Web 2.0 features, giving viewers the opportunity to watch Internet delivered content and use Web applications and services via their TV.
Cyberlocker ‐ Also known as file hosting service or online file storage provider, is an Internet service providing server space to users to upload and store or host their files, which can then be downloaded on the user’s other computers connected to the Internet or by other users.
DTH (Direct‐To‐Home) ‐ A satellite television broadcast which usually transmits to a dish antenna used for home reception.
DTT (Digital Terrestrial Television) ‐ Any terrestrial audiovisual transmission by digital signals, as opposed to the analogue signals used by analogue terrestrial TV.
DVR / PVR (Digital / Personal Video Recorder) ‐ A DVR or PVR is a consumer device, equipped with hard disc, that makes the viewer able to pause, rewind, record and play back any broadcast, cable or satellite TV program.
FTA (Free‐To‐Air) ‐ Any television service allowing users with the appropriate receiving equipment to receive the signal and watch the content without subscription or a one‐off fee.
FTV (Free‐to‐View) ‐ Any free of charge and/or encrypted audiovisual content transmission that does not require subscription to be watched.
HDTV (High Definition Television) ‐ Video that has higher pixel resolution than that of traditional television systems (SDTV, Standard Definition Television). HDTV has roughly five times the pixels per frame of SDTV.
IPTV (Internet Protocol Television) ‐ A system which delivers television content via the Internet Protocol over packet‐switched networks.
Linear (audiovisual service) ‐ As defined by the Audiovisual Media Services Directive (2007/65/EC), "television broadcasting or television broadcast (i.e. a linear audiovisual media service) means an audiovisual media
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Glossary
service provided by a media service provider for simultaneous viewing of programmes on the basis of a programme schedule”.
Long‐form videos ‐ Usually referred to full‐length audiovisual content, such as TV programmes, movies, sport events, etc.
Near‐VoD ‐ A PPV (Pay‐Per‐View) technique, usually used by operators using high‐bandwidth distribution mechanisms such as satellite and cable TV, in which multiple feeds of a program are broadcast at short time intervals (30, 60 minutes, etc.) providing more convenience for viewers.
Non‐linear (audiovisual service) ‐ As defined by the Audiovisual Media Services Directive (2007/65/EC), "on‐ demand audiovisual media service" (i.e. a non‐linear audiovisual media service) means an audiovisual media service provided by a media service provider for the viewing of programmes at the moment chosen by the user and at his individual request on the basis of a catalogue of programmes selected by the media service provider”.
OTT TV (Over‐The‐Top TV) ‐ The online delivery of Internet‐based on‐demand and linear audiovisual content as well as web‐based applications to any enabled TV sets (via integrated devices or companion devices such as game consoles, set‐top boxes, etc.).
P2P (Peer‐To‐Peer) ‐ A distributed computer network and related file exchange protocols in which each end‐ user’s computer can act both as a client and server for the other computers on the network, thereby allowing shared access to files and peripherals without the need for a central server.
PDA (Personal Digital Assistant) ‐ Also known as a palmtop computer, is a mobile device that works as a personal information manager, often including a Web browser and the ability to connect to the Internet. Today, the vast majority of PDAs are smartphones.
PPV (Pay‐Per‐View) ‐ A service by which TV viewers can purchase events to view via private broadcast. The broadcaster shows the event at the same time to everyone ordering it (vs. VoD systems).
Pull VoD ‐ Also known as “pure VoD”, is the standard version of video‐on‐demand where users can select and watch a programme on demand at any time.
Push VoD ‐ A VoD service which uses a personal video recorder (PVR) to store a selection of content, often transmitted in spare capacity, at low bandwidth or during off‐peak usage times (e.g. overnight).
Short‐form videos ‐ Audiovisual content that is short in length, such as video clips, user‐generated content, highlights and extracts from TV programmes, etc.
Simulcast ‐ Simultaneous broadcasting of the same program / channel over two or more different transmission platforms.
STB (Set‐Top Box) ‐ A tuner device that connects to a signal source (e.g. DTH or cable distribution) and enables a TV set to receive digital television broadcasts.
S‐VoD (Subscription Video on Demand) ‐ A VoD service model, which allows unlimited access to any specific content in the provider’s catalogue for a regularly charged fee.
Tablet Computer ‐ Also simply known as “tablet”, is a wireless, portable Personal Computer equipped with a touch screen. It is usually smaller than a notebook computer but larger than a mobile phone or a personal digital assistant (PDA).
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Glossary
Time‐shifted TV channel ‐ A television channel carrying a rebroadcast of its "parent" (master) channel's schedule with a fixed time delay (30, 60 minutes, 24 hours, etc.).
T‐VoD (Transactional Video on Demand) ‐ A VoD service model, which allows viewers to access to a selected content offered in the provider’s catalogue in exchange for a one‐off payment.
UGC (User Generated Content) ‐ Content made publicly available, usually over the Internet, which is created outside of professional routines and practices.
VoD (Video on Demand) ‐ Service that allow viewers to select and watch on demand, at any time, any audiovisual content which is included in a library. Viewing can be free or paid for. VoD services can be categorized according to the distribution technique (near‐VoD, pull VoD, push VoD) or consumption / business model (T‐VoD, S‐VoD).
Web‐native video service ‐ Any service specifically designed for the Internet environment that usually takes the form of extensions of TV properties (programme and / or channel‐related content) or original content.
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Table of figures
FIGURE 1 – EUROPEAN UNION: THE EDITORIAL CONTENT SECTOR – AUDIOVISUAL INDUSTRIES VS OTHER EDITORIAL CONTENT INDUSTRIES (2010) ...... 8
FIGURE 2 – THE EDITORIAL CONTENT SECTOR AS A KEY PILLAR OF THE DIGITAL ECONOMY ...... 14 FIGURE 3 – EUROPEAN UNION: THE EDITORIAL CONTENT SECTOR – AUDIOVISUAL INDUSTRIES VS OTHER EDITORIAL CONTENT INDUSTRIES (2010) ...... 15 FIGURE 4 – AUDIOVISUAL MEDIA SERVICES VS OTHER AUDIOVISUAL “OFFLINE” INDUSTRIES (CINEMA AND HOME VIDEO) (2010) ...... 15 FIGURE 5 – GROWTH RATES OF THE EDITORIAL CONTENT INDUSTRIES IN THE EUROPEAN UNION (2000‐2010) ...... 16 FIGURE 6 – BREAKDOWN OF TOTAL EDITORIAL CONTENT SECTOR IN FRANCE, GERMANY, ITALY AND THE UK: AUDIOVISUAL INDUSTRIES VS OTHER EDITORIAL INDUSTRIES (2010) ...... 19 FIGURE 7 – AVERAGE DAILY LINEAR TV CONSUMPTION IN SELECTED EU COUNTRIES ...... 22 FIGURE 8 – WORLDWIDE CONSUMER INTERNET TRAFFIC EVOLUTION BY TYPE ...... 23 FIGURE 9 – WORLDWIDE CONSUMER INTERNET VIDEO TRAFFIC BY CATEGORY IN 2015 ...... 24 FIGURE 10 – NUMBER OF NON‐LINEAR AUDIOVISUAL SERVICES OFFERED BY COMMERCIAL NATIONAL BROADCASTERS IN THE EU (2008‐2011) ...... 25 FIGURE 11 – BROADCASTERS’ INTEGRATED APPROACH TO CONTENT CREATION AND DISTRIBUTION IN THE INTERNET ENVIRONMENT ...... 26 FIGURE 12 – COMMERCIAL BROADCASTERS’ VIDEO‐ON‐DEMAND SERVICES IN SELECTED EUROPEAN COUNTRIES ...... 27 FIGURE 13 – PROFESSIONAL BROADCAST SHARE OF TOTAL VIDEO CONTENT VIEWED ONLINE IN THE UK (APRIL 2011) ...... 29 FIGURE 14 – TOP TEN INTERNET VIDEO SERVICES RANKED BY TOTAL UNIQUE VIEWERS IN GERMANY (APRIL 2011) ...... 32 FIGURE 15 – TOP TEN INTERNET VIDEO PLAYERS RANKED BY TOTAL UNIQUE VIEWERS ON ALL DEVICES IN THE UK (APRIL 2011) ...... 32 FIGURE 16 – TOP TEN INTERNET VIDEO SERVICES RANKED BY TOTAL UNIQUE VIEWERS IN SPAIN (MARCH 2011) ...... 33 FIGURE 17 – BROADCASTERS’ VIDEO SERVICE SHARE OF TOTAL VIDEO CONTENT VIEWED ONLINE IN THE UK (APRIL 2011) ...... 33 FIGURE 18 – CROSS BORDER CIRCULATION OF A SAMPLE PROGRAMME (GENRE: EUROPEAN POLICE‐DRAMA) ...... 38 FIGURE 19 – CROSS BORDER CIRCULATION OF A SAMPLE PROGRAMME (GENRE: INTERNATIONAL TV CHANNEL) ...... 38 FIGURE 20 – EXAMPLES OF CROSS‐BORDER CIRCULATION OF AUDIOVISUAL CONTENT, SERVICES AND FORMATS ...... 39
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Table of figures
FIGURE 21 – BREAKDOWN OF FIXED AND VARIABLE COSTS BY TYPE FOR A PAN‐EUROPEAN VOD SERVICE (EXCLUDING RIGHTS ACQUISITION COSTS) ...... 42 FIGURE 22 – LINEAR TV SERVICES OFFERED BY COMMERCIAL NATIONAL BROADCASTERS IN FRANCE (2001‐ 2006‐2011) AND BREAKDOWN BY TYPE (2011) ...... 43 FIGURE 23 – NUMBER OF NON‐LINEAR AUDIOVISUAL SERVICES OFFERED BY COMMERCIAL NATIONAL BROADCASTERS IN FRANCE (2008‐2011) ...... 43 FIGURE 24 – LINEAR TV SERVICES OFFERED BY COMMERCIAL NATIONAL BROADCASTERS IN SLOVAKIA (2001‐ 2006‐2011) AND BREAKDOWN BY TYPE (2011) ...... 44 FIGURE 25 – NUMBER OF NON‐LINEAR AUDIOVISUAL SERVICES OFFERED BY COMMERCIAL NATIONAL BROADCASTERS IN SLOVAKIA (2008‐2011) ...... 44 FIGURE 26 – LINEAR TV SERVICES OFFERED BY COMMERCIAL NATIONAL BROADCASTERS IN SWEDEN (2001‐ 2006‐2011) AND BREAKDOWN BY TYPE (2011) ...... 45 FIGURE 27 – NUMBER OF NON‐LINEAR AUDIOVISUAL SERVICES OFFERED BY COMMERCIAL NATIONAL BROADCASTERS IN SWEDEN (2008‐2011) ...... 45
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Methodological note and disclaimer
It should be noted that in many cases market figures are not released into the public domain by the relevant parties. Where first sources’ figures were lacking e‐Media Institute has used a range of third part estimates after an appropriate evaluation. In cases where third party estimates were inconsistent, e‐Media Institute has taken the value from the source that appeared to be the most thorough and reliable. Users of this report should be aware that some figures are based on estimates produced by e‐Media Institute in absence of official data.
While it has made every effort to ensure that the information contained herein has been obtained from reliable sources, e‐Media Institute makes no representation or guarantee as to the accuracy and completeness of such information.
The information reported in this document is not intended to be a comprehensive study or intended to provide strategic, legal or commercial advice to clients or potential clients of e‐Media Institute. No party receiving this document should act upon the information contained herein without taking appropriate professional advice and undertaking a thorough examination of the particular market situation.
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