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Pay TV vs. SVOD - Between Complementarity and Competition - Product Image

Pay TV vs. SVOD - Between Complementarity and Competition

  • ID: 2519734
  • March 2013
  • 35 Pages
  • IDATE

This insight offers an overview of the pay TV market in the main European countries and in the United States. It describes the different models of subscription-based video on demand offerings (SVoD): supply-side strategies and description of main players’ services. It lastly analyses the SVoD services developments compared to the pay TV global market.

This insight is part of our ongoing monitoring Television & New Video

1. Executive Summary

2. The main features of pay TV
2.1. The relative importance of pay TV
2.1.1. The main source of revenue of the audiovisual market
2.2. Three models of pay TV
2.3. Significant heterogeneity across the markets
2.3.1. In terms of the level of development
2.3.2. In terms of ARPU
2.3.3. In terms of market concentration

3. The different models of subscription video on demand offerings
3.1. The main SVOD services worldwide
3.2. SVOD offerings of the pay TV players
3.2.1. The strategy of the offering
3.2.2. Description of services
3.2.3. Results of the pay TV channels' SVOD services

3.3. SVOD of free-to-air and special-interest TV channels and of content producers and distributors
3.3.1. The strategy of the offering
3.3.2. Description of services
3.3.3. Results of the free-to-air TV channels' SVOD services

3.4. SVOD services offered by DVD & Blu-ray rentals industry players
3.4.1. The strategy of the offering
3.4.2. Description of services
3.4.3. Results of SVOD services associated with DVD rentals

3.5. SVOD services offered by Internet industry players
3.5.1. The strategy of the offering
3.5.2. Description of services
3.5.3. Results of SVOD services offered by Internet industry players

4. Competition between SVOD and pay TV
4.1. Are stand-alone SVOD and Pay-TV interchangeable?
4.1.1. Modes of accessing the services
4.1.2. Levels of content freshness
4.1.3. Ownership of content rights
4.1.4. Price positioning of pay TV and SVOD offerings

4.2. What impact does SVOD have on pay TV?
4.2.1. A measurable cord-cutting or cord shaving effect?
4.2.2. A possible long-term effect: the cord-nevers
4.2.3. The risk of pressure in conditions of market maturity

Tables

Table 1: Description of the main SVOD services worldwide
Table 2: Examples of SVOD services offered by special-interest TV channels and content producers and distributors in France
Table 3: Leading TV channel partners of YouTube by number of unique video viewers in December 2012 in the United States
Table 4: Comparison of changes in the monthly ARPU (per video subscriber) of pay TV operators in the United States and the United Kingdom
Table 5: Changes in the number of subscribers to a sampling of premium channels
Table 6: Changes in the programming costs of a sampling of pay TV operators

Figures

Figure 1: Comparison of changes in the number of subscribers to a pay TV offering, Hulu Plus and Netflix in the United States
Figure 2: Distribution of television revenues by revenue source and by region in 2012
Figure 3: Changes in the distribution of television revenues by revenue source, 2009-2013
Figure 4: Breakdown of revenues of the audiovisual industry in the United States and in the major European markets in 2011
Figure 5: Penetration of pay TV worldwide by region in 2012
Figure 6: Distribution of television revenues by revenue source and by region in 2012
Figure 7: Penetration of pay TV in the United States and in the major European markets, 2009-2013
Figure 8: Level of annual ARPU and penetration of premium services in pay TV homes in the United States and in the major European markets in 2012
Figure 9: Pay TV market share of the three leading national pay TV operators in 2011
Figure 10: Positioning of the offerings of the leading SVOD players in the United States
Figure 11: Level of annual ARPU and penetration of premium services in pay TV homes in the United States and in the major European markets in 2011
Figure 12: Changes in the Canal+ France subscriber base by quarter, 2011 vs. 2012
Figure 13: Change in the number of Hulu Plus subscribers, Q4 2010-Q4 2012
Figure 14: Change in the number of subscribers to Netflix offers, Q4 2011-Q4 2012
Figure 15: Netflix 2012 Annual Results
Figure 16: Changes in the number of unique users and the number of videos viewed by users of Amazon's video services in the second half of 2012
Figure 17: Changes in the relative importance of SVOD compared to the pay TV market
Figure 18: Changes in the relative importance of the leading SVOD markets
Figure 19: Presence of US SVOD services in Europe in 2012 and expected launches in 2013
Figure 20: Consumption of TV content by screen type in France, April-May 2012
Figure 21: Addressable terminals for the leading SVOD services in the United States
Figure 22: Positioning of the movie offerings of the pay TV industry players and other SVOD service providers according to media chronology
Figure 23: Holders of the exploitation rights of the content produced by the major six US studios as part of an on-demand service in the main European countries (20th Century Fox, Paramount, Sony Pictures, Universal, Walt Disney, Warner Bros.)
Figure 24: Monthly cost comparison of pay TV and on-demand services in the United States
Figure 25: Monthly cost comparison of pay TV and on-demand services in the United Kingdom
Figure 26: Changes in the number of subscribers to a pay TV offer in the United States and in Germany between 2009 and 2012
Figure 27: Comparison of weekly consumption of traditional TV and online video by age in the United States in Q3 2012
Figure 28: Comparison of changes in consumption of traditional TV and online video by age in the United States between late 2011 and late 2012
Figure 29: Changes in the percentage of US households with access to solely mobile telephony

Florence LEBORGNE, Responsable de la Practice TV & Contenus numériques Florence Le Borgne, Director of Studies, joined IDATE in July 1998. She is now head of TV & Digital Content Practice. Florence’s prime area of focus is the development of digital broadcasting (terrestrial, cable, satellite and IPTV, mobile TV, digital cinema, video and TV on the web) dealing with both the economic and strategic aspects of those sectors, at a macro and microeconomic level. More generally, her work involves analysis of media groups’ strategies. Before coming to IDATE, Florence Le Borgne worked as the Head of Research in the Nord-Pas-de-Calais Regional Development Agency's Economic Observation department, where she devoted herself primarily to issues relating to the Information Society, the development of telework and the mastery of key technologies. Ms. Le Borgne is a graduate of the Lille school of management EDHEC (Ecole des Hautes Etudes Commerciales).

Alexandre JOLIN, Consultant
Alexandre joined IDATE in 2011 as a consultant in the "Media and Digital Content” Business Unit. Before joining IDATE, Alexandre JOLIN had completed several internships, notably in the consulting firm IMCA specialized in the media, where he conducted a series of assignments on Connected Television, and prior to that in the ranks of "pure player" in Mobibase mobile television.

Alexandre has a Master 2 degree in Economics, Sociology and New Technologies in the Media, jointly accredited by the Universities of Paris Dauphine, Paris III - Sorbonne Nouvelle, ENS Paris and the EHESS, a Master 1 degree in Cinema & Audiovisual Studies, a Bachelor’s degree in Information and Communication Science and a Bachelor’s Degree in English (Language, Literature and Civilizations) from the University of Paris III

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