On-demand audiovisual services have mushroomed in Europe. Video on demand, catch- Video on up television and video sharing are vying for the consumer’s attention but are facing the problem of internet piracy at the same time. The landscape has become very fragmented demand and is developing very rapidly. Business models are being defined and are in some cases Video on merging with one another. The crisis on the advertising market and the limits imposed and on the development of the free services offered by the public broadcasters are leading to a growing interest in paid-for services, but the development of pay models is being catch-up TV impeded by piracy and it seems these services will not come into their own until on- demand offerings can be fully accessed on a television set instead of only on a computer demand in Europe screen or mobile telephone. The provision of access to VOD on a TV is thus becoming a very important issue and galvanising manufacturers and network operators into action. This report provides a complete and up-to-date picture of the different on-demand au- diovisual services and of how they fit into the strategy of the various types of player. It and is both concise and detailed and will be a useful tool for anyone seeking to understand the complexity of this evolving field. catch-up TV Set up in December 1992, the European Audiovisual Observatory’s mission is to gather European and distribute information on the audiovisual industry in Europe. The Observatory is a in Europe European public service body comprised of 36 member states and the European Commu- Audiovisual nity, represented by the European Commission. It operates within the legal framework of the Council of Europe and works alongside a number of partner and professional organi- Observatory sations from within the industry and with a network of correspondents. In addition to contributions to conferences, other major activities are the publication of a Yearbook, newsletters and reports, the compilation and management of databases and the provi- October 2009 sion of information through the Observatory’s Internet site (http://www.obs.coe.int). The Direction du développement des médias (Directorate for Media Development, http:// Direction du www.ddm.gouv.fr) is the French administrative body in charge of the development of all the media, ranging from the written press and traditional audiovisual services to new A report by the développement forms of online communication. des médias It is the preferred interlocutor of professionals working in this sector and has three main European Audiovisual Observatory roles: and the • modernization of the administrative supervision of public broadcasting services ; Video on demand and catch-upTV in Europe • adaptation of the national public support of the press ; Direction du développement • follow-up of the necessary legislation evolutions regarding freedom of the press, des médias (DDM) communications and on-line services. with the collaboration of NPA Conseil Video on demand and catch-up TV in Europe ISBN 978-92-871- 6736-1 (print edition), € 329 ISBN 978-92-871- 6737-8 (electronic edition), € 445 Video on demand and catch-up television in Europe October 2009 A study by the European Audiovisual Observatory and the Direction du développement des médias (France), with the collaboration of NPA Conseil Video on demand and catch-up television in Europe A study by the European Audiovisual Observatory and the Direction du développement des médias (France), with the collaboration of NPA Conseil Directors of publication: Wolfgang Closs, Executive Director of the European Audiovisual Observatory, and Laurence Franceschini, Directrice du Développement des Médias, Direction du développement des médias (DDM). Supervising Editors: Frédéric Bokobza (DDM), Alexandre Joux (DDM), Laure Kaltenbach (DDM), Cloe Korman (DDM), André Lange (European Audiovisual Observatory). Study carried out by: André Lange (European Audiovisual Observatory), with the collaboration of Nathalie Benhamou (European Audiovisual Observatory), Alexandre Joux (DDM), Hélène Gros (NPA Conseil) and Jean-Marie Le Guen (NPA Conseil) Marketing: Markus Booms (European Audiovisual Observatory), markus [email protected] Editorial assistance: Valérie Haessig (European Audiovisual Observatory) Translation: Michael Finn Publisher: European Audiovisual Observatory 76 Allée de la Robertsau – F – 6700 0 Strasbourg Tel.: +33(0)3 90 21 60 0 0– Fax: +33(0)3 90 21 60 19 E-mail: [email protected] - URL: http://www.obs.coe.int The analyses made in these articles are the authors’ 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 of the Council of Europe. Data compiled by external sources are quoted for the purpose of information. The authors of this report are unable to verify either their means of compilation or their pertinence. © European Audiovisual Observatory and Direction du développement des médias, October 2009. TABLE OF CONTENT PART 1: INTRODUCTION: THE TECHNICAL AND ECONOMIC PARAMETERS OF ON-DEMAND AUDIOVISUAL SERVICES............................. 11 1.1. DEFINITIONS AND SCOPE OF THE STUDY....................................................................................... 13 1.1.1. The technical definition proposed by the ITU............................................................13 1.1.2. The legal definition provided by the Audiovisual Media Services Directive ..............14 1.1.3. Common definitions...................................................................................................14 1.1.4. The scope of this study: video on demand, catch-up TV and video sharing services .....................................................................................................................14 1.2. THE TECHNICAL CONDITIONS FOR THE PROVISION OF ON-DEMAND AUDIOVISUAL................................................................................................................................................. 16 1.2.1.On-demand services via the Internet ........................................................................17 1.2.1.1. Downloading and streaming.................................................................................17 1.2.1.2. The range of multimedia players..........................................................................17 1.2.1.3. Territorial limitation...............................................................................................19 1.2.1.4. The computer as the main reception device.........................................................19 1.2.1.5. Peer-to-peer architectures....................................................................................19 1.2.2. On-demand audiovisual services on DSL networks..................................................22 1.2.3. On-demand audiovisual services on digital cable networks .....................................23 1.2.4. On-demand audiovisual services on fibre optic cable to the home (FTTH)..............25 1.2.5. On-demand audiovisual services via digital terrestrial television and satellite..........26 1.2.6. Hybrid services..........................................................................................................26 1.2.7. On-demand audiovisual services to mobile telephones............................................27 1.2.7.1. Downloading programmes in compatible formats via an Internet- connected PC.......................................................................................................27 1.2.7.2. Mobile Internet connection and access via streaming..........................................27 1.2.7.3. Direct downloads..................................................................................................27 1.2.7.4. The 4G perspective: LTE technology ...................................................................27 1.2.8. Personal mobile television (PMT) in the DVB-H mode is not adapted to on- demand audiovisual services ....................................................................................28 1.2.9. Services that provide help to make recordings .........................................................29 1.2.10. The accessibility of on-demand services on a television set ....................................30 1.2.10.1.The aim invoved with regard to access to a television set....................................30 1.2.10.2. Media centre PC, games consoles and dedicated set-top boxes.........................30 1.2.10.3. Side-loading systems ...........................................................................................32 1.2.10.4. Direct connection from a TV to the Internet..........................................................32 1.2.10.5. Connection via DVD players, Blu-ray players and home theatre systems............34 1.2.10.6. A promising market ..............................................................................................34 1.2.11. The HbbTV initiative..................................................................................................36 1.3. WHAT NETWORKS FOR THE FUTURE DEVELOPMENT OF ON-DEMAND AUDIOVISUAL SERVICES? – CURRENT SITUATION AND FORECAST ................................ 37 1.3.1.Broadband networks..................................................................................................37 1.3.2. The rollout of fibre optic networks .............................................................................41