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On-Demand Audiovisual Markets in the European Union

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On-Demand Audiovisual Markets in the European Union ON-DEMAND AUDIOVISUAL MARKETS IN THE EUROPEAN UNION FINAL REPORT A study prepared for the European Commission DG Communications Networks, Content & Technology by Digital Agenda for Europe This study was carried out for the European Commission by European Audiovisual Observatory, 76 Allée de la Robertsau, 67000 Strasbourg, France Authors: Director of publication: Susanne Nikoltchev, Executive Director, European Audiovisual Observatory Supervision: André Lange, Head of Department for Information on Markets and Financing, European Audiovisual Observatory Author: Christian Grece, Analyst at the European Audiovisual Observatory Preparatory notes: Lorenzo Principali, Analyst at the European Audiovisual Observatory Internal identification Contract number: 30-CE-0520606/00-86 SMART number: 2012/0026 DISCLAIMER By the European Commission, Directorate-General of Communications Networks, Content & Technology. The information and views set out in this publication are those of the author(s) and do not necessarily reflect the official opinion of the Commission nor of the European Audiovisual Observatory, its members or of the Council of Europe. The Commission does not guarantee the accuracy of the data included in this study. 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 compilation or their pertinence. Neither the Commission nor any person acting on the Commission’s behalf may be held responsible for the use which may be made of the information contained therein.. ISBN 978-92-79-38425-7 DOI 10.2759/51823 © European Union, 2014. All rights reserved. Certain parts are licensed under conditions to the EU. Reproduction is authorised provided the source is acknowledged. INTRODUCTION ........................................................................................................................................... 5 1 DEFINITIONS ............................................................................................................................................... 7 1.1.1 The ITU definition of Video on Demand .................................................................................................. 7 1.1.2 The legal definition provided by the Audiovisual Media Services Directive ............................................ 7 1.1.3 Market definitions ................................................................................................................................... 9 1.1.4 The technical solutions for on-demand audio-visual services ............................................................... 11 2 THE MAVISE DATABASE AND THE CENSUS OF ON-DEMAND AUDIOVISUAL SERVICES .......................... 16 2.1 Services established in a country ................................................................................................... 16 2.2 Services available in a country ...................................................................................................... 20 ADVERTISING-FINANCED ON-DEMAND AUDIOVISUAL SERVICES ............................................................... 31 3 THE ONLINE ADVERTISING MARKET ................................................................................................................ 35 3.1 Online advertising in Europe in 2012 and 2013: trends and developments (IAB & eMarketer) .... 35 3.1.1 IAB Europe AdEx Benchmark 2012 and main figures available on the online advertising market in Europe 36 3.1.2 Online video advertising ....................................................................................................................... 44 3.1.3 Mobile advertising ................................................................................................................................ 50 3.1.4 Social network advertising .................................................................................................................... 53 3.1.5 Programmatic, real-time bidding and video advertising ....................................................................... 56 3.2 The online advertising market 2011– Data available on online advertising investments (IDATE & IAB data) 58 3.2.1 The online advertising market .............................................................................................................. 59 3.2.2 The European online advertising market .............................................................................................. 64 3.2.3 Online ad spend compared to total and other media ad spend (Warc data) 2008-2014 ..................... 69 3.2.4 The American online advertising market 2012 ..................................................................................... 73 3.3 Online display advertising - a complex market ............................................................................. 82 3.3.2 Online video advertising, the rising star of display advertising ............................................................. 85 3.3.3 Trends underlying the increased ad spend on online display advertising ............................................. 88 3.3.4 Various kinds of audiovisual services financed by advertising .............................................................. 90 4 TYPES OF ADVERTISING-SUPPORTED ON-DEMAND AUDIOVISUAL SERVICES ............................................................. 91 5 AUDIENCE DATA: COMSCORE’S VIDEO METRIX ................................................................................................ 92 5.1.1 The United Kingdom ............................................................................................................................. 94 5.1.2 Germany ................................................................................................................................................ 95 5.1.3 France.................................................................................................................................................... 96 5.1.4 Spain ...................................................................................................................................................... 97 5.1.5 Italy ....................................................................................................................................................... 98 5.1.6 The Netherlands .................................................................................................................................... 99 TRANSACTIONAL VIDEO ON-DEMAND SERVICES ..................................................................................... 100 6 TYPES OF TRANSACTIONAL VOD SERVICE ....................................................................................................... 102 7 STRATEGIES OF SELECTED INTERNATIONAL PLAYERS ......................................................................................... 103 7.1 Typology of players ..................................................................................................................... 103 8 VOD MARKET STATISTICS ........................................................................................................................... 115 8.1 International Video Federation (IVF) statistics ............................................................................ 115 8.2 Market shares of VoD services .................................................................................................... 124 8.2.1 Market shares United Kingdom .......................................................................................................... 125 8.2.2 Market shares Germany ...................................................................................................................... 131 8.2.3 Market shares France .......................................................................................................................... 133 SUBSCRIPTION ON-DEMAND AUDIOVISUAL SERVICES ............................................................................. 136 9 TYPES OF SERVICES ................................................................................................................................... 139 10 SUBSCRIPTION VIDEO ON DEMAND (SVOD) ............................................................................................... 140 10.1 What is a subscription video-on-demand (SVoD) service? ...................................................... 140 10.1.1 Main SVoD players in EU-5 and Nordics .............................................................................................. 141 10.2 US OTT SVoD market ............................................................................................................... 146 10.3 Main market numbers available for Europe ............................................................................ 149 10.4 Growth drivers of SVoD services .............................................................................................. 155 10.4.2 Exclusive licenses and licensing deals ................................................................................................. 157 10.4.3 Investment in original content ............................................................................................................ 164 10.4.4 ATAWAD – Any time, anywhere, any device ....................................................................................... 167 11 EXAMPLES OF THE STRATEGIES OF THE MAIN PLAYERS - NETFLIX ....................................................................
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