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The Development of the European Market for On-Demand Audiovisual Services

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The Development of the European Market for On-Demand Audiovisual Services The development of the European market for on-demand audiovisual services Christian Grece, André Lange, Agnes Schneeberger and Sophie Valais European Audiovisual Observatory March 2015 1 2 3 “The development of the European market for on-demand audiovisual services” Report prepared by the European Audiovisual Observatory for DG Connect Director of publication: Susanne Nikoltchev, Executive Director, European Audi-ovisual Observatory Supervision: André Lange, Head of Department for Information on Markets and Financing, European Audiovisual Observatory Authors: Christian Grece, Analyst at the European Audiovisual Observatory [In-troduction and Section I, II, III, IV & V] André Lange, Head of Department for Information on Markets and Financing, European Audiovisual Observatory [Introduction, Section III & IV] Agnes Schneeberger, Analyst at the European Audiovisual Observatory [Section V] Sophie Valais, Analyst at the European Audiovisual Observatory [Section IV] This report was prepared in the framework of a contract between the European Commission (DG Connect) and the European Audiovisual Observatory The analyses presented in this report are the author’s opinion and cannot in any way be considered as representing the point of view of the European Audiovisual Observatory, its members or of the Council of Europe or the European Commis- sion. Data compiled by external sources are quoted for the purpose of information. The author of this report is not in a position to verify either their means of compila- tion or their pertinence. 4 Table of contents INTRODUCTION 13 1 The emergence of online players on the worldwide audiovisual market 14 2 The worldwide emergence of US online groups 17 3 The lack of detailed information published by leading players in Europe 20 4 The decline of the “brick and mortar” activities 21 5 The development of the various segments of the pay-VoD market 23 6 Different maturation levels for SVoD services in European markets 26 7 The importance of online VoD in consumers expenditure 27 8 Trends in advertising on online video services 29 9 The role of on-demand audiovisual services in the promotion of European works32 10 MAVISE database– Data on on-demand audiovisual services in Europe 36 10.1 Number of on-demand audiovisual services in the European Union as of the 31st December 2015 36 10.2 Tables “On-demand audiovisual services established in the EU” 41 10.3 Tables “On-demand audiovisual services available in the EU” 50 5 SECTION I ONLINE ADVERTISING IN THE EU IN 2013 74 Executive summary 75 11 The European Online advertising market in 2013 78 11.1 Main available figures on the European online advertising market 78 11.2 Focus on Display advertising 101 SECTION II RECENT DEVELOPMENTS OF THE SVOD MARKET IN EUROPE IN 2014 Executive summary 132 12 The European subscription video on-demand service market 134 12.1 European market figures 134 12.2 OTT video, a general trend reinforcing the adoption of SVoD services in Europe 137 12.3 Profile of Netflix and its 2014 European expansion into 6 countries 151 13 France 161 14 The United Kingdom 172 15 Germany 174 6 SECTION III THE PROPORTION AND THE PROMINENCE OF EUROPEAN WORKS IN VOD CATALOGUES 182 Executive summary 183 Introduction - The proportion and prominence of European works in VoD catalogues 188 Questionnaire survey 200 16 Overview of replies received 201 16.1 Number of services by country of establishment and country of availability 201 16.2 Number of services by business model 204 16.3 Overview of services included in the survey 205 17 Results of the replies to the questionnaire 206 17.1 Number of titles in VoD catalogues by service provider 206 17.2 Proportion of European works in VoD catalogues 207 17.3 Means of ensuring prominence 221 Rovi data on European works in catalogues of VoD services 225 18 Analysis of Rovi data 225 18.1 Overview of the total proportion of European works in VoD catalogues 225 18.2 Proportion of European Feature films in VoD catalogues 230 18.3 Proportion of European TV films in VoD catalogues 233 18.4 Proportion of European TV series in VoD catalogues 236 18.5 Proportion of European animation in VoD catalogues 239 7 SECTION IV THE ROLE OF PROVIDERS OF VOD SERVICES AND DISTRIBUTION PLATFORMS IN THE FINANCING OF FILM AND AUDIOVISUAL PRODUCTION 243 Introduction 244 Mandatory financial contribution to European works by on-demand AVMS providers and distribution platforms 246 19 BE - BELGIUM 250 19.1 French Community of Belgium 250 19.2 Flemish Community of Belgium 256 20 CZ – CZECH REPUBLIC 258 20.1 Legal basis 258 20.2 Promotion of European works by on-demand AVMS providers 258 20.3 Monitoring and enforcement 259 21 DE - GERMANY 260 21.1 Mandatory contributions in the context of the federal film policy 260 22 ES - SPAIN 265 22.1 Legal basis 265 22.2 Promotion of European works by “electronic communication service providersand programme catalogue service providers” 265 22.3 Monitoring and enforcement 266 23 FR - FRANCE 268 23.1 Regulation relating to providers of on-demand audiovisual services268 23.2 Tax on revenues of providers of on-demand audiovisual media 272 services 24 CROATIA 275 24.1 Legal basis 275 24.2 Monitoring and implementation 276 25 IT – ITALY 278 25.1 Legal basis 278 25.2 Promotion of European works by on-demand AVMS providers 278 25.3 Monitoring and enforcement 279 8 26 POLAND 281 26.1 Legal basis 281 26.2 Monitoring and implementation 283 27 PT - PORTUGAL 285 27.1 Legal basis 285 27.2 Mandatory contribution to European production by on-demand AVMS providers 285 27.3 The reforms of the film funding system in 2012 286 27.4 Mandatory contribution of distributors to the financing of the national film fund 286 27.5 Mandatory investments in production 287 27.6 Monitoring and enforcement 288 28 SI - SLOVENIA 289 28.1 Legal basis 289 28.2 Promotion of European works by on-demand AVMS providers 289 28.3 Monitoring and enforcement 290 Investments in productions by distributors of audiovisual services and providers of on- demand audiovisual media services in Europe 29 Investments in production by distributors of on-demand audiovisual media services 291 29.1 Investments in original productions by providers of on-demand audiovisual media services in Europe 296 29.2 Investments in original productions by video-on-demand players in the USA 302 Conclusions 313 9 SECTION V MEASUREMENT OF FRAGMENTED AUDIOVISUAL AUDIENCES 315 30 Introduction 316 31 Executive Summary 320 32 International players 325 32.1 Adobe 326 32.2 Alexa Internet Inc. 327 32.3 comScore 328 32.4 Eurodata TV Worldwide 330 32.5 Ipsos MORI 332 32.6 Kantar Media 334 32.7 Nielsen 336 32.8 Rentrak 339 32.9 Cisco 341 32.10 Sandvine 343 33 Overview of audience measurement services in the EU 347 33.1 Overview of audience measurement services available in the EU in 2014 350 33.2 Average daily television viewing times in the EU 353 33.3 Measurement of time-shifted viewing in the EU 356 33.4 Measurement of TV viewing on PCs in the EU 358 34 National TV audience measurement services 359 34.1 Austria - AGTT/ Gfk Austria 359 34.2 Belgium - CIM / GfK 361 34.3 Bulgaria - GARB Audience Research Bulgaria 363 34.4 Croatia – Nielsen Television Audience Measurement 364 34.5 Cyprus - Nielsen Television Audience Measurement (Cyprus) 365 34.6 Czech Republic – ATO / MEDIARESEARCH 366 34.7 Denmark – TNS Gallup TV-Meter 367 34.8 Estonia – TNS EMOR 368 34.9 Finland - Finnpanel Oy 369 34.10 France - Médiamétrie / Médiamat 370 10 34.11 Germany – AGF / GfK Fernsehforschung 372 34.12 Greece - Nielsen Television Audience Measurement 374 34.13 Hungary - Nielsen Television Audience Measurement 375 34.14 Ireland - Nielsen Television Audience Measurement 376 34.15 Italy - Auditel / Nielsen Television Audience Measurement 377 34.16 Latvia - TNS Latvia 379 34.17 Lithuania - TNS LT 380 34.18 Luxembourg 381 34.19 Malta 381 34.20 Netherlands - Stichting KijkOnderzoek 382 34.21 Poland - Nielsen Television Audience Measurement 385 34.22 Portugal - CAEM 386 34.23 Romania - ARMA / Kantar Media 387 34.24 Spain - Kantar Media 388 34.25 Slovakia – PMT/ TNS SK 389 34.26 Slovenia - Nielsen Television Audience Measurement 390 34.27 Sweden - MMS Mediamätning i Skandinavien AB 391 34.28 United Kingdom - BARB 392 35 Data sources for online viewing behaviour 396 35.1 National studies 396 35.2 Example of cross-national study 399 comScore Video Metrix 400 36 General overview of comScore’s measurements EU-6 401 36.1 Media trends for EU-6 – Key indicators 401 36.2 Country focus – Media trend, Monthly averages, viewing time per age group 410 36.3 Audiences by website genre 423 11 Annexe 434 Annexe - Online advertising market in the EU in 2013 434 Annexe – Recent developments of the SVoD market in Europe in 2014 478 Annexe - The proportion and the prominence of European works in VoD catalogues 486 12 INTRODUCTION 13 1 The emergence of online players on the world- wide audiovisual market Estimates of the worldwide audiovisual market One relatively solid estimate of the trends of the worldwide audiovisual market can be gained by compiling the audiovisual revenues of the 50 leading media groups. We include in audiovisual turnover: turnover from broadcasting activities (radio, television), turnover from the distribution of audiovisual services by satellite, turnover from production, distribution and exhibition activities, turnover from publishing recorded music, turnover from publishing video games, turnover from retail activities (physical or online), turnover from online audiovisual activities (which includes audiovisual media services as well as open platforms such as YouTube or Dailymotion). From 2009 to 2013, the audiovisual turnover from the audiovisual activities of the 50 major worldwide groups rose from USD 361.5 billion to USD 425 billion.
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