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SMART 2007/0004 Final Report

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SMART 2007/0004 Final Report Ref. Ares(2013)2984111 - 03/09/2013 in partnership with Study on the role of SMEs and European audiovisual works in the context of the fast changing and converging home entertainment sector (PayTV, Homevideo, Video on Demand, video games, internet, etc) SMART 2007/0004 Final Report October 2008 Role of SMEs and European audiovisual works in the changing home entertainment sector Notice This document is the final report of a study on the role of SMEs and European audiovisual works in the context of the fast changing and converging home entertainment sector. It contains the final results of the study. Opinions given in this report are those of its authors; this report does not necessarily reflect the point of view of the European Commission, and the Commission cannot be considered liable for the accuracy of the information in the report. Neither the European Commission, nor any person acting under its responsibility, can be held liable for any subsequent utilization made of this report. Reproduction is authorized subject to citing the source. This report was completed by the following people: peacefulfish: Thierry Baujard, Caroline Burnett, Soizic Cadio, Peer Fisher, Sebastian Haberl, Marc Lauriac Media Consulting Group: Silvia Angrisani, Héloise Fontanel, Alain Modot peacefulfish/MCG Final Report – October 2008 2 Role of SMEs and European audiovisual works in the changing home entertainment sector Content EXECUTIVE SUMMARY ........................................................................................ 7 INTRODUCTION................................................................................................ 17 Context of the study ........................................................................................... 18 Objectives of the study ....................................................................................... 20 Scope of the study ............................................................................................. 21 Definition of the terms of the study....................................................................... 22 METHODOLOGY................................................................................................. 23 Definition of the various home entertainment platforms ........................................... 23 Research........................................................................................................... 25 Overview........................................................................................................ 25 Primary research ............................................................................................. 25 Secondary research ......................................................................................... 26 Phase 2.......................................................................................................... 27 Participation in industry events.......................................................................... 27 PART I: CURRENT PRACTICES AND TRENDS IN THE HOME ENTERTAINMENT SECTOR IN EUROPE .......................................................................................... 28 A. LEGAL ASPECTS OF THE EUROPEAN HOME ENTERTAINMENT SECTOR .......... 28 Overview of regulation and legal practices in the European home entertainment sector 28 General Legal Environment in Europe ................................................................. 29 Copyrights...................................................................................................... 30 Antipiracy measures and enforcement ................................................................ 30 Consumer’s rights............................................................................................ 31 Audiovisual Media Services ............................................................................... 32 Cultural aspects .............................................................................................. 32 National Implementation .................................................................................. 32 Current and future legal practices......................................................................... 34 Applicable law ................................................................................................. 34 Place shifting .................................................................................................. 34 Ownership and exploitation of digital rights ......................................................... 35 Media windows................................................................................................ 35 Rights clearing ................................................................................................ 36 DRM .............................................................................................................. 36 Legal aspects of VoD........................................................................................ 36 Different legal provisions for games ................................................................... 37 Current and future market practices...................................................................... 39 Consumer’s perspective.................................................................................... 39 Similarities and differences between film/TV and games practices........................... 39 Legal challenges and opportunities........................................................................ 41 Multi-territory licensing .................................................................................... 41 Competition.................................................................................................... 41 B. EUROPEAN HOME ENTERTAINMENT MARKET................................................ 43 Preliminary note................................................................................................. 43 European home entertainment market across Europe in 2006................................... 44 Media convergence readiness in Europe .............................................................. 45 Overview of the home entertainment market in Europe......................................... 53 Size of the home entertainment market .............................................................. 57 European TV market ........................................................................................... 59 Market size..................................................................................................... 59 peacefulfish/MCG Final Report – October 2008 3 Role of SMEs and European audiovisual works in the changing home entertainment sector Market segmentation ....................................................................................... 60 The digital switch-over ..................................................................................... 63 Share of European audiovisual works on the market ............................................. 64 European home video market .............................................................................. 65 Home Video Rental and Retail Markets................................................................ 65 DVD-Player Penetration .................................................................................... 68 High-Definition................................................................................................ 68 European VOD market ........................................................................................ 70 VOD market share on the audiovisual market ...................................................... 70 Market segmentation ....................................................................................... 71 Marketing aspects of VoD ................................................................................. 73 Role of European audiovisual works.................................................................... 76 Main groups of countries................................................................................... 76 Trends ........................................................................................................... 77 European video sharing market ......................................................................... 79 European games market ..................................................................................... 81 Market segmentation ....................................................................................... 81 Role of European AV works in the offer on the market........................................... 82 Trends ........................................................................................................... 83 Country focus ................................................................................................. 84 European market of audiovisual content for mobiles ................................................ 89 Market Size .................................................................................................... 89 The Mobile TV Market....................................................................................... 90 Country focus ................................................................................................. 93 C. EUROPEAN HOME ENTERTAINMENT INDUSTRY ............................................ 98 The European home entertainment industry ........................................................... 99 The European television
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