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Video on Demand in Europe Video on Demand in Europe Study caried out by NPA Conseil for the Direction du développement des médias and the European Audiovisual Observatory Director of publication: Wolfgang Closs, Executive Director of the European Audiovisual Observatory Supervising Editors: Laure Kaltenbach (DDM), André Lange (European Audiovisual Observatory). Study carried out by: NPA Conseil: Valérie Champetier, Deputy Director; Denis Gaumondie, Consultant; Samir Ouachtati, Consultant. Marketing: Markus Booms, [email protected] Editorial Assistant : Valérie Haessig (European Audiovisual Observatory) Publisher: European Audiovisual Observatory 76, Allée de la Robertsau – F – 67000 Strasbourg Tel.: +33 (0)3 88 14 44 00 – Fax: +33(0)3 88 14 44 19 E-mail: [email protected] - URL: http://www.obs.coe.int The analyses made in these articles are the author’s own opinions and cannot in any way be considered as representing the point of view of the Direction du développement des médias, the European Audiovisual Observatory, its members or the Council. © Direction du développement des médias and European Audiovisual Observatory, May 2007. Printed in France ISBN 978-92-871-6258-8 OBS ref.: n53290v2 – Revised 06/2007 2 VIDEO ON DEMAND IN EUROPE Study carried out by NPA Conseil for the Direction du développement des médias (DDM – France) and the European Audiovisual Observatory 3 4 TABLE OF CONTENTS 1SUMMARY OF THE STUDY ............................................................... 11 1.1 BACKGROUND TO THE STUDY ................................................................................ 11 1.2SCOPE OF THE STUDY ............................................................................................ 11 1.3METHODOLOGY...................................................................................................... 13 1.3.1Data collection and preparation of country sheets............................................13 1.3.2Overview of VoD and analysis of country sheets...............................................14 1.4 KEY POINTS ........................................................................................................... 15 1.4.1Multi-speed Europe ......................................................................................15 1.4.2Different VoD operators in the countries surveyed............................................17 1.4.3Coexistence of two economic models: pay VoD and free DVD ............................17 1.4.3.1Pay VoD: rental and purchase..........................................................17 1.4.3.2Free VoD (or FoD for “Free on Demand”) ..........................................18 1.4.4Films: the main form of editorial content on offer.............................................19 1.4.5Shorter release windows ...............................................................................20 2INTRODUCTION.............................................................................. 23 2.1 VARIATIONS IN THE MATURITY OF THE VOD MARKET: A MULTI-SPEED EUROPE.................................................................................................................. 23 2.2REDEFINING THE BALANCE OF POWER BETWEEN DIFFERENT PLAYERS ................ 24 2.3 COEXISTENCE OF VARIOUS MARKETING MODELS.................................................. 25 3VOD TECHNIQUES AND ECONOMIC MODELS................................... 27 3.1 VOD TECHNIQUES .................................................................................................. 27 3.1.1Networks delivering VoD ...............................................................................27 3.1.1.1VoD via PC ....................................................................................28 3.1.1.2VoD via IPTV .................................................................................30 3.1.1.3VoD via cable.................................................................................33 3.1.1.4VoD via digital terrestrial television and satellite................................35 3.1.1.5Prospects across all networks: DRM, compression formats and piracy ...39 3.1.2Streaming and downloading ..........................................................................42 3.1.3Push and pull VoD ........................................................................................43 3.2 ECONOMIC MODELS FOR VOD................................................................................ 44 3.2.1Two leading models: pay-VoD and free VoD supported by advertising................44 3.2.1.1Pay-VoD........................................................................................44 3.2.1.2VoD supported by advertising (or FoD for “free on demand”)...............46 3.2.2Defining characteristics of the various models..................................................47 3.2.2.1Framework for the development of VoD ............................................47 3.2.2.2Efforts to arrive at a sustainable model .............................................51 3.2.2.3Market appraisal and types of programmes on offer...........................53 5 4 ECONOMIC, INDUSTRIAL AND REGULATORY IMPLICATIONS OF VOD .................................................................. 55 4.1 LEGISLATION......................................................................................................... 55 4.1.1National legislation and interprofessional agreements .......................................55 4.1.1.1The arrival of VoD has not been accompanied by an increase in national legislative controls .............................................................55 4.1.1.2VoD release of films and audiovisual programmes: self-regulation by operators in many countries ............................................................56 4.1.2European Union initiatives.............................................................................56 4.1.2.1European Charter for Film Online.....................................................57 4.1.2.2From the Television without Frontiers Directive to the proposed Audiovisual Media Services Directive.................................................58 4.1.2.3Extending the directive’s scope ........................................................58 4.1.3Consultation on the competitiveness of Europe’s online market..........................66 4.2 HOW VOD FITS INTO THE FILM AND AUDIOVISUAL INDUSTRY ............................. 68 4.2.1How VoD fits into the film industry .................................................................68 4.2.1.1Debate on the role of VoD providers and distributors in financing film production.....................................................................................68 4.2.1.2Reorganisation of the film distribution sequence as a result of VoD.......69 4.2.2How VoD fits into the audiovisual industry.......................................................75 4.2.2.1Reappraising programme schedules and the life cycle of programmes...75 4.2.2.2Audience fragmentation and measurement of VoD downloads..............76 4.2.2.3VoD and audiovisual sector revenue .................................................81 4.2.3Different players involved in VoD: types and relationships.................................83 4.2.3.1Content producers..........................................................................85 4.2.3.2Broadcasters are starting to position themselves................................86 4.2.3.3Content aggregators and rights management companies: between B2B and B2C .................................................................................87 4.2.3.4Distributors: telecommunications operators are some of the most active...........................................................................................88 4.2.4Cross-border VoD services ............................................................................89 5THE MARKET FOR VOD IN 24 EUROPEAN COUNTRIES..................... 93 5.1 AT - AUSTRIA ......................................................................................................... 95 5.1.1General background.....................................................................................95 5.1.2Regulation of non-linear services and provisions on the chronology of film distribution..................................................................................................96 5.1.3Development of non-linear services ................................................................97 5.2 BE - BELGIUM....................................................................................................... 101 5.2.1General background................................................................................... 101 5.2.2Regulation of non-linear services and provisions on the chronology of film distribution................................................................................................ 103 5.2.3Development of non-linear services .............................................................. 104 5.3 CH - SWITZERLAND.............................................................................................. 114 5.3.1General background................................................................................... 114 5.3.2Regulation of non-linear services and provisions of the chronology of films........ 115 5.3.3Development of non-linear services .............................................................. 115 5.4 CY – CYPRUS ........................................................................................................ 120 5.4.1General
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