A bright present and a brighter future for Video on Demand. This is the result of the Video on Demand in Europe: 2019-2022 - The Netflix's Throne report, which predicts VOD finally surpassing € 10 billion in 2022, keeping with a still double-digit CAGR of 12%. The total revenue growth in a 4-year time span (2018-2022) will be an impressive € 4 billion.
The demand for OTT content is ever-growing, and thanks to tangled content licensing agreements viewers can now navigate multiple services to see the TV shows and movies they are interested in. Consumers are more seeking a combination of functionality, high-quality original content and low price, and Netflix has always chosen to invest in original content programming and its library. Netflix has demonstrated continued growth in both its primary markets of the US and UK, as well as France and Germany. With more than half the total SVOD revenues in Europe, Netflix beats all other players.
But now, content owners are starting to roll out their own streaming services (see Disney and Apple), and the notion derived from that fact that if content producers do not own the streaming mechanism, those who own the services will decide to deliver competing content. All the challengers try to catch Netflix's throne by means of huge content production investments, technological advancements, cross-sector partnerships and consolidation.
Moreover, with the growth of video viewing on smartphones and tablets, traffic from these devices keep on growing as a percentage of total Internet traffic, with the hype on 5G that is growing up day after day following the increasing number of field trials, commercial launch announcements and so on. Furthermore, the video pushes on the traffic is heavier because of the introduction of Ultra-High-Definition (UHD), or 4K, video streaming. By 2022, more IP traffic will cross global networks than in all prior “internet years” combined up to the end of 2016. In other words, more traffic will be created in 2022 than in the 32 years since the Internet started.
Table of Contents
1. Preface
2. Executive Summary
3. Introduction
4. The state of global video
- As Internet traffic boasts, video keeps on leading the way
- Video impact on networks and traffic patterns
- Mobile: 4G takes the lead, while 5G launches begin
- Consumers want it “their way”
- Mobile habits, mobile contents, mobile connections
- 5G and the video content
5. Consolidation on the run
- New services, more subscriptions?
- AT&T/WarnerMedia
- Comcast
- Disney
- Apple
- Netflix
- Amazon
- The SVOD rush for content creating
6. The on-demand sector in Europe
- Overview
- Best cases, main players and country analysis
- The UK
- France
- Germany
7. Market forecast
- On demand pay services revenues
- Revenues from single transaction: TVOD
- Subscription Revenues: SVOD
- VOD revenues in the main countries (France, Germany, UK)
- VOD revenues in the other countries
Index of Tables and Figures
Figure 1. Global IP traffic (EB/month)
Figure 2. Traffic growth by application
Figure 3. Global VOD traffic
Figure 4. Global CDN Internet Traffic
Figure 5. Global devices/connections growth (in billion)
Figure 6. Global cord cutting generates 72% higher traffic
Figure 7. Percentage of connections (excluding licensed cellular IoT)
Figure 8. Shares of European connections by technology
Figure 9. Global Mobile Data vs. Voice Usage (PB/month)
Figure 10. TV viewers turning to Facebook during Ad breaks
Figure 11. How online consumers prefer to access video content, 2018
Figure 12. Mobile vs. desktop: average minutes per platform
Figure 13. Shares of mobile data traffic (% on total video plays)
Figure 14. Mobile-Firstness of markets on digital population
Figure 15. Shares of data traffic accounted on mobile
Figure 16. 5G Global Deployments
Figure 17. 5G Application Clusters
Figure 18. Potential 5G User Experience Scenarios
Figure 19. SVOD subscription factor ratings, by service
Table 1. How new streaming services stack up
Figure 20. Timeline on assets merged in the AT&T/Time Warner deal
Figure 21. Value of what AT&T get from the merger
Figure 22. What is at stake of the AT&T/Time Warner merger
Figure 23. Comcast acquisition of European pay-TV giant Sky
Figure 24. Significant Comcast deals over recent years
Figure 25. Subscribers of largest multichannel pay-TV providers (US)
Figure 26. Comcast video, voice & data subscribers, 2010 – 2019 (‘000)
Figure 27. How Disney is reaching all media audience
Figure 28. A map of the companies Disney owns
Figure 29. Disney+ global roadmap
Figure 30. Cumulative returns over the past year for Disney and Netflix
Figure 31. Apple CEO Tim Cook unveils Apple TV+ for its original shows
Figure 32. Device support for OTT video services
Figure 33. Most viewed Netflix shows, as % of all Netflix views
Figure 34. Ratio of Netflix’s content spend vs. content amortization
Figure 35. Netflix content spend, 2012 – 2018 (US$ Bln)
Figure 36. Origin of content on Netflix, 2016 – 2018
Figure 37. Total paid Netflix subscribers, 2012 – 2019E (Mln)
Figure 38. Amazon Prime content strategy
Figure 39. Amazon: moving to SVOD dominance
Figure 40. US Amazon Prime households, 2018 – 2021
Figure 41. Overlap between US users of Netflix and Amazon
Figure 42. Amazon revenues stream
Table 2. Global SVOD providers, recap and finance
Figure 43. Global SVOD services subscribers’ levels
Figure 44. The battle of the balance sheets
Table 3. Major platforms Media giants expanded through DTC ventures
Figure 45. Platforms with the most nominations at the Emmy Awards
Table 4. Companies producing content and delivering to consumers
Figure 46. Proportion of total content spend globally, and in the US (%)
Figure 47. Content spend by companies providing SVOD services (US$)
Figure 48. Number of scripted original series
Figure 49. Reach vs. engagement of selected video apps
Figure 50. Internet users with at least one SVOD subscription, 2018 (%)
Figure 51. Unique films available on VOD
Figure 52. Short on European content: percentage on total, 2019
Table 5. Main broadcasters’ alliances in Europe
Figure 53. European Broadcasters monthly audience, 2019
Figure 54. Top 5 European online video services in subscriptions, 2018
Figure 55. Annual pay-TV subs increase/decline in selected markets
Figure 56. HHs spend 50%+ of screen time on unmatched, 2018 (Mln)
Figure 57. UK Subscription VOD, 2013 – 2018 (Households - Mln
Figure 58. UK Subscribers to SVOD and pay-TV, 2010 – 2018
Figure 59. UK favorite video streaming services, 2018
Table 6. Premium Video On Demand services in UK, 2019
Figure 60. Ranking of main VOD platforms in France, 2019/2018
Figure 61. Evolution of VOD main platforms in France
Figure 62. Shares of VOD programmes in France by nationality, 2018
Figure 63. Global SVOD usage in France, by device
Table 7. Main VOD services in France, 2019
Figure 64. Usage of VOD content providers in Germany, 2018
Figure 65. Most important device: TV vs. smartphone by age, 2018
Table 8. Main VOD services in Germany, 2018
Figure 66. Media usage during the day in Germany
Figure 67. Average viewing time in Germany, Min/day
Figure 68. VOD market in Europe (€ Mln)
Figure 69. Revenue Mix, by business model (%)
Figure 70. Breakdown of VOD revenue in Europe (€ Mln)
Figure 71. Market growth (% YoY)
Figure 72. TVOD revenues (€ Mln)
Figure 73. TVOD market share (%)
Figure 74. SVOD revenues (€ Mln)
Figure 75. SVOD market share (%)
Figure 76. Evolution of VOD revenues in the Big 3
Figure 77. Big 3 market share per business model on total VOD (%)
Figure 78. Big 3 market growth (% YoY)
Table 9. Market share by country (on total VOD, %)
Table 10. Market share by country (on the Big 3, %)
Figure 79. VOD revenues in the “other countries” (€ Mln)
Figure 80. Market share per business model on total VOD (%)
Figure 81. Market growth (% YoY)
Figure 82. Revenue Mix (%)
Companies Mentioned
- Amazon
- Apple
- AT&T/WarnerMedia
- Comcast
- Disney
- Netflix
