Video-On-Demand: Europe’s Main Markets in the Aftermath of Netflix World Conquest
This study aims to identify and describe the key characteristics and challenges of the developing market of pay video-on-demand services by focusing on the United States market and major European markets (Germany, Spain, France, Italy, United Kingdom).
The study comprises three parts:
The study comprises three parts:
- offering and pricing models of pay video-on-demand services and the means of interaction between the service providers and content rights holders;
- marketing and competitive positionings adopted by pay video-on-demand service providers in the markets studied;
- growth factors and profitability conditions for transactional video-on-demand and subscription video-on-demand services, focusing on real-world examples of international players and their local competitors.
1. EXECUTIVE SUMMARY
2. METHODOLOGY & DEFINITIONS
2.1. General methodology of IDATE's reports
2.2. Definitions
3. TYPOLOGY OF PAY SERVICES
3.1. Pricing models and price positioning
3.1.1. Transactional video-on-demand
3.1.2. Subscription video-on-demand
3.2. Means of interaction with rights holders
3.2.1. Revenue sharing model for transactional services
3.2.2. Subscription video-on-demand services: an adaptation of the pay-TV model
3.3. Offering structures and marketing positionings
3.3.1. Little differentiation between offerings from TVOD service providers
3.3.2. Subscription video-on-demand services searching for an identity
4. COMPETITIVE POSITIONING
4.1. Major video-on-demand market trends
4.1.1. A booming sector
4.1.2. SVOD driving value growth in on-demand services
4.1.3. Netflix is a growth driver in all countries
4.1.4. On-demand consumption complements rather than competes with pay-TV
4.2. Different competitive environments depending on country
4.2.1. United Kingdom: the market leader in Europe
4.2.2. Germany and France: developing markets
4.2.3. Italy and Spain: emerging markets
4.2.4. United States
5. PROFITABILITY CONDITIONS
5.1. Conditions for success
5.1.1. External factors
5.1.2. Internal factors
5.2. Conditions for profitability
5.2.1. Transactional services
5.2.2. SVOD services
2. METHODOLOGY & DEFINITIONS
2.1. General methodology of IDATE's reports
2.2. Definitions
3. TYPOLOGY OF PAY SERVICES
3.1. Pricing models and price positioning
3.1.1. Transactional video-on-demand
3.1.2. Subscription video-on-demand
3.2. Means of interaction with rights holders
3.2.1. Revenue sharing model for transactional services
3.2.2. Subscription video-on-demand services: an adaptation of the pay-TV model
3.3. Offering structures and marketing positionings
3.3.1. Little differentiation between offerings from TVOD service providers
3.3.2. Subscription video-on-demand services searching for an identity
4. COMPETITIVE POSITIONING
4.1. Major video-on-demand market trends
4.1.1. A booming sector
4.1.2. SVOD driving value growth in on-demand services
4.1.3. Netflix is a growth driver in all countries
4.1.4. On-demand consumption complements rather than competes with pay-TV
4.2. Different competitive environments depending on country
4.2.1. United Kingdom: the market leader in Europe
4.2.2. Germany and France: developing markets
4.2.3. Italy and Spain: emerging markets
4.2.4. United States
5. PROFITABILITY CONDITIONS
5.1. Conditions for success
5.1.1. External factors
5.1.2. Internal factors
5.2. Conditions for profitability
5.2.1. Transactional services
5.2.2. SVOD services
TABLES & FIGURES
Table 1: Average price comparison of four TVOD services for selected movies and series, France, February 201612
Table 2: Overview of the various subscriptions available for Netflix's streaming service
Table 3: List of original series and series distributed exclusively by Netflix worldwide as of 31 December 2015.
Table 4: List of original series and series distributed exclusively by Amazon Prime Instant Video in countries where the service is available as of 31 December 2015
Table 5: List of original series distributed by Hulu in the United States as of 31 December 2015
Table 6: Characteristics of the major on-demand services in the United Kingdom, end of 2015
Table 7: Characteristics of the major on-demand services in Germany, end of 2015
Table 8: French VOD platforms ranked by number of users
Table 9: Characteristics of the major on-demand services in France, end of 2015
Table 10: Characteristics of the major on-demand services in Italy, end of 2015
Table 11: Characteristics of the major on-demand services in Spain, end of 2015
Table 12: The major VOD and OTT video services of cable operators in the United States
Table 13: Comparison of the major subscription services in the United States
Figure 1: Price positioning comparison of select subscription services in the United Kingdom
Figure 2: Value distribution for TVOD
Figure 3: Illustration of the SVOD business model
Figure 4: Comparison of growth in the number of VOD services in major European countries between February 2012 and December 2015, by country where service was established
Figure 5: Fixed broadband penetration rates in the major European markets between 2010 and 2015
Figure 6: Mobile broadband penetration rates in the major European markets between 2010 and 2015
Figure 7: Revenue growth comparison between SVOD, DTR and EST, Europe, 2010-2015 (million EUR)
Figure 8: Revenue growth comparison between SVOD, DTR and EST, United States, 2010-2015
Figure 9: Revenue growth comparison between SVOD, DTR and EST in the major European countries, 2010-2015
Figure 10: Comparison of SVOD revenue growth in major European market, 2010-2015
Figure 11: Marketing spending by Netflix worldwide, 2011-2015
Figure 12: Pay-TV penetration in TV households, 2010-2015
Figure 13: Average annual expenditure on pay-TV (per subscribed household) and on video-on-demand services (per TV household) in 2015
Figure 14: Percentage of households with a double subscription to pay-TV and SVOD and those with a SVOD-only subscription, in the major European countries and the United States, 2015
Figure 15: Growth rates for the various types of VOD service and pay-TV in Europe
Figure 16: Growth rates for the various types of VOD service and pay-TV in the United States
Figure 17: UK's market share for the various types of VOD service and pay-TV in Europe (in % of European revenues)
Figure 18: Breakdown of the UK's video-on-demand revenues by type of service, 2010 and 2015
Figure 19: VOD services by genre in the United Kingdom
Figure 20: Subscriber growth for the three major SVOD services in the United Kingdom (millions of subscribers)
Figure 21: Contractual release windows in the United Kingdom
Figure 22: Germany's market share for the various types of video-on-demand service and pay-TV in Europe
Figure 23: Breakdown of Germany's video-on-demand revenues by type of service, 2010 and 2015
Figure 24: VOD services by genre in Germany
Figure 25: Regular use of the major video-on-demand services by German users, early 2015
Figure 26: Overview of the legally defined release windows for subsidised films in Germany
Figure 27: France's market share for the various types of video-on-demand service and pay-TV in Europe
Figure 28: Breakdown of France's video-on-demand revenues by type of service, 2010 and 2015
Figure 29: VOD services by genre in France
Figure 30: Overview of the legally defined release windows in France
Figure 31: Italy's market share for the various types of VOD service and pay-TV in Europe
Figure 32: Breakdown of Italy's video-on-demand revenues by type of service, 2010 and 2015
Figure 33: VOD services by genre in Italy
Figure 34: Spain's market share for the various types of VOD service and pay-TV in Europe (in % of European revenues)
Figure 35: Breakdown of Spain's video-on-demand revenues by type of service, 2010 and 2015
Figure 36: VOD services by genre in Spain
Figure 37: United States' market share for the various types of VOD service and pay-TV worldwide
Figure 38: Breakdown of the United States' video-on-demand revenues by type of service, 2010 and 2015
Figure 39: Contractual release windows in the United States
Table 1: Average price comparison of four TVOD services for selected movies and series, France, February 201612
Table 2: Overview of the various subscriptions available for Netflix's streaming service
Table 3: List of original series and series distributed exclusively by Netflix worldwide as of 31 December 2015.
Table 4: List of original series and series distributed exclusively by Amazon Prime Instant Video in countries where the service is available as of 31 December 2015
Table 5: List of original series distributed by Hulu in the United States as of 31 December 2015
Table 6: Characteristics of the major on-demand services in the United Kingdom, end of 2015
Table 7: Characteristics of the major on-demand services in Germany, end of 2015
Table 8: French VOD platforms ranked by number of users
Table 9: Characteristics of the major on-demand services in France, end of 2015
Table 10: Characteristics of the major on-demand services in Italy, end of 2015
Table 11: Characteristics of the major on-demand services in Spain, end of 2015
Table 12: The major VOD and OTT video services of cable operators in the United States
Table 13: Comparison of the major subscription services in the United States
Figure 1: Price positioning comparison of select subscription services in the United Kingdom
Figure 2: Value distribution for TVOD
Figure 3: Illustration of the SVOD business model
Figure 4: Comparison of growth in the number of VOD services in major European countries between February 2012 and December 2015, by country where service was established
Figure 5: Fixed broadband penetration rates in the major European markets between 2010 and 2015
Figure 6: Mobile broadband penetration rates in the major European markets between 2010 and 2015
Figure 7: Revenue growth comparison between SVOD, DTR and EST, Europe, 2010-2015 (million EUR)
Figure 8: Revenue growth comparison between SVOD, DTR and EST, United States, 2010-2015
Figure 9: Revenue growth comparison between SVOD, DTR and EST in the major European countries, 2010-2015
Figure 10: Comparison of SVOD revenue growth in major European market, 2010-2015
Figure 11: Marketing spending by Netflix worldwide, 2011-2015
Figure 12: Pay-TV penetration in TV households, 2010-2015
Figure 13: Average annual expenditure on pay-TV (per subscribed household) and on video-on-demand services (per TV household) in 2015
Figure 14: Percentage of households with a double subscription to pay-TV and SVOD and those with a SVOD-only subscription, in the major European countries and the United States, 2015
Figure 15: Growth rates for the various types of VOD service and pay-TV in Europe
Figure 16: Growth rates for the various types of VOD service and pay-TV in the United States
Figure 17: UK's market share for the various types of VOD service and pay-TV in Europe (in % of European revenues)
Figure 18: Breakdown of the UK's video-on-demand revenues by type of service, 2010 and 2015
Figure 19: VOD services by genre in the United Kingdom
Figure 20: Subscriber growth for the three major SVOD services in the United Kingdom (millions of subscribers)
Figure 21: Contractual release windows in the United Kingdom
Figure 22: Germany's market share for the various types of video-on-demand service and pay-TV in Europe
Figure 23: Breakdown of Germany's video-on-demand revenues by type of service, 2010 and 2015
Figure 24: VOD services by genre in Germany
Figure 25: Regular use of the major video-on-demand services by German users, early 2015
Figure 26: Overview of the legally defined release windows for subsidised films in Germany
Figure 27: France's market share for the various types of video-on-demand service and pay-TV in Europe
Figure 28: Breakdown of France's video-on-demand revenues by type of service, 2010 and 2015
Figure 29: VOD services by genre in France
Figure 30: Overview of the legally defined release windows in France
Figure 31: Italy's market share for the various types of VOD service and pay-TV in Europe
Figure 32: Breakdown of Italy's video-on-demand revenues by type of service, 2010 and 2015
Figure 33: VOD services by genre in Italy
Figure 34: Spain's market share for the various types of VOD service and pay-TV in Europe (in % of European revenues)
Figure 35: Breakdown of Spain's video-on-demand revenues by type of service, 2010 and 2015
Figure 36: VOD services by genre in Spain
Figure 37: United States' market share for the various types of VOD service and pay-TV worldwide
Figure 38: Breakdown of the United States' video-on-demand revenues by type of service, 2010 and 2015
Figure 39: Contractual release windows in the United States
