Yearbook 2019/2020 Key Trends
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YEARBOOK 2019/2020 KEY TRENDS TELEVISION, CINEMA, VIDEO AND ON-DEMAND AUDIOVISUAL SERVICES - THE PAN-EUROPEAN PICTURE → Director of publication Susanne Nikoltchev, Executive Director → Editorial supervision Gilles Fontaine, Head of Department for Market Information → Authors Francisco Javier Cabrera Blázquez, Maja Cappello, Laura Ene, Gilles Fontaine, Christian Grece, Marta Jiménez Pumares, Martin Kanzler, Ismail Rabie, Agnes Schneeberger, Patrizia Simone, Julio Talavera, Sophie Valais → Coordination Valérie Haessig → Special thanks to the following for their contribution to the Yearbook Ampere Analysis, Bureau van Dijk (BvD), European Broadcasting Union - Media Intelligence Service (EBU-M.I.S.), EURODATA-TV, LyngSat, WARC, and the members of the EFARN and the EPRA networks. → Proofreading Anthony Mills → Layout Big Family → Press and public relations Alison Hindhaugh, [email protected] → Publisher European Audiovisual Observatory 76 Allée de la Robertsau, 67000 Strasbourg, France www.obs.coe.int If you wish to reproduce tables or graphs contained in this publication please contact the European Audiovisual Observatory for prior approval. Please note that the European Audiovisual Observatory can only authorise reproduction of tables or graphs sourced as “European Audiovisual Observatory”. All other entries may only be reproduced with the consent of the original source. Opinions expressed in this publication are personal and do not necessarily represent the view of the Observatory, its members or of the Council of Europe. © European Audiovisual Observatory (Council of Europe), Strasbourg 2020 YEARBOOK 2019/2020 KEY TRENDS TELEVISION, CINEMA, VIDEO AND ON-DEMAND AUDIOVISUAL SERVICES - THE PAN-EUROPEAN PICTURE 4 YEARBOOK 2019/2020 – KEY TRENDS TABLE OF CONTENT INTRODUCTION 0 Six keywords for 2019 and, possibly, 2020 . 6 PRODUCTION 1.1 Film financing: Main financing sources are public support and broadcasters . 8 1.2 Gender equality for film directors: Still a long way to go . 10 1.3 High-end TV fiction in Europe: Growing production . 12 1.4 Film and audiovisual funds: Criteria for grants . 14 CIRCULATION 2.1 VOD catalogues: National films on TVOD; international series on SVOD . 16 2.2 Visibility in TVOD: Promotion benefits only the few . 18 2.3 Films: From cinemas to VOD . 20 2.4 European film exports down in 2018 . 22 2.5 VOD: Cultural, geographical and language proximity impact the export of European films . 24 2.6 High-end series: UK leads SVOD exports . 26 2.7 EU copyright rules fit for the digital age . 28 AUDIOVISUAL SERVICES 3.1 Supply of audiovisual services: UK runaway leader . 30 3.2 The internationalisation of TV audience markets in Europe . 32 MARKETS 4.1 Focus on Observatory Presidency country: Morocco . 34 4.2 SVOD is the only expanding audiovisual market . 36 4.3 Audiovisual market: Disparities in size, revenue structure and growth . 38 4.4 European theatrical infrastructure still expanding . 40 4.5 Cinema: European market share in the EU up in 2018 . 42 4.6 Cinema : EU admissions and GBO decrease in 2018 . 44 4.7 Home video: Retail TVOD on the rise . 46 4.8 TV advertising stagnating in real terms . 48 4.9 Pay TV: A highly heterogeneous market . 50 4.10 Pay services in Russia: the challenge to increasing revenues . 52 4.11 On-demand services: Continued growth in SVOD market; AVOD services on the rise . 54 4.12 Europe is not cord-cutting across the board . 56 4.13 Artificial intelligence in the AV sector . 58 PLAYERS 5.1 Worldwide audiovisual leaders topped by US . 60 5.2 Top 100 Europe: Sustained growth driven by US-based groups . 62 5.3 Public broadcasters under pressure . 64 5.4 Production: European consolidation driven by TV content . 66 5.5 Overview of the EU’s efforts to tackle disinformation in 2019 . 68 YEARBOOK 2019/2020– KEY TRENDS 5 0 INTRODUCTION Six keywords for 2019 and, possibly, 2020 This 5th edition of "key trends" is a selection Disney of over 30 topics which, to the Observatory The year 2019 may also be regarded as team, appear to indicate the most significant a "Disney year". The company achieved trends affecting the European audiovisual all-time box-office highs – both domestic, market. The publication provides the usual with a 33% market share, and worldwide, mix of analysis and key data, extracted with a line-up of franchises and sequels. from our 2019 activities involving reports Also in 2019, Disney acquired 20th Century and databases. From a wide spectrum of Fox, a major Hollywood studio, as well as information we have drawn six keywords a portfolio of TV channels, and a stake which shaped the sector in 2019. in US-based SVOD service Hulu. Finally, November 2019 saw the launch of the Subscription video on demand group’s own SVOD service, Disney+, initially in the US and five additional territories In 2019, the number of subscribers to (among which the Netherlands), with subscription video on demand (SVOD) in further roll-outs planned in 2020. Disney+ Europe significantly exceeded for the first is the company’s answer to the declining time 100 million. Growth has picked up ratings of some of its TV channels, and, drastically since 2010, when only a few more importantly, a bet on direct-to- thousand European households subscribed consumer distribution. to a handful of pioneering services, and before Netflix launched in Europe in 2012 (initially in the United Kingdom, Ireland Podcasts and Scandinavia) and Amazon gradually Another key word in 2019 was "podcast". enlarged its footprint. Back in 2010, video The audience for catch-up radio and original on demand (VOD) was mainly perceived audio programmes (native podcasts) as the purchase or rental of programmes; skyrocketed: the music streaming service subscriptions now account for more than Spotify experienced a 50% growth of its 80% of all VOD revenues. Together with podcast audience1 and acquired Gimlet catch-up television, SVOD is at the heart Media, a leading podcast producer. The of increasingly rapid migration of video market for podcast advertising grew by 40% consumption from linear television to a in the United States.2 And the estimated "whenever, wherever and on whatever number of active podcast shows on Apple terminal" model. Music is now over 800 000, representing more than 30 million episodes.3 Podcasts are poised to become an increasingly competitive market, competing with incumbent radio stations and pure music service players. 1 Source : Spotify. 2 Source : Magna. 3 Source : Podcast Insights. 6 YEARBOOK 2019/2020 – KEY TRENDS TV series Consolidation About 500 prime-time original TV series In 2019, consolidation wasn’t just a seasons aired in the US and Europe in 2019, US phenomenon. In addition to the respectively, marking sustained growth in takeover of 20th Century Fox by Disney, production, in a trend sometimes referred the CBS-Viacom merger agreement and to as "peak TV". In Europe, TV series are the acquisition of Fox Sport Networks at the core of the battle to conquer or by Sinclair Broadcasting (a group of US preserve audiences. Resultant impacts local TV stations), British-based cinema already apparent include: growth in the exhibitors announced the acquisition number of dramas produced; reallocation of Canada’s Cineplex to create North of resources from TV films to series; America’s largest chain of movie theatres. shorter seasons with a view to retaining Other Europe-driven consolidation viewers; alliances between broadcasters moves included: plans by France’s allowing for increased budgets through Banijay to acquire leading production co-productions; and competition for top company EndemolShine; the takeover talent. of satellite pay TV service M7 by Canal+ (Vivendi); the acquisition of Bonnier Broadcasting by telecom operator Telia; European audiovisual remains flat the sale of certain Eastern Europe cable The European audiovisual sector operations by Liberty Global to Vodafone; remained flat (again), at least in real and the merger of the Scandinavian terms. The only segment growing pay TV operations of Viasat (Nordic significantly was (again) SVOD (83% of Entertainment) and Canal Digital the sector’s growth in 2018). In addition: (Telenor). TV advertising did little more than resist In this fast-evolving context, it is the role the apparently unstoppable migration of of the Observatory to continue providing advertising expenditure to the Internet; useful data and analysis through its pay television appeared mature; public databases and studies, without masking broadcaster funding in most countries the complexity of the environment. As suffered from constrained budgetary the poet Paul Valéry said, a balance must outlooks; cinema box-office remained be found between false simplicity and stable; and engagement with physical unusable complexity. It is the ambition video continued to diminish. Among of this “Key Trends” report to offer an the countries doing better, on average, introduction to the rich data available than others were: the Slovak Republic, online (www.obs.coe.int). Portugal and Montenegro. YEARBOOK 2019/2020 KEY TRENDS 7 1 PRODUCTION 1 .1 Film financing: Main financing sources are public support and broadcasters Unique insights into the financing European fiction films primarily of European fiction films financed by direct public funding and broadcasters In its second year of analysing the financing structures of European fiction films, the The two most significant financing sources Observatory, in collaboration with the of European theatrical fiction films remained European Film Agency Research