Overview of VoD services in the EU & Future developments. Europa International Athens, 23 rd November 2013
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1 Overview of VoD services in the EU & Future developments Europa International Athens, 23 rd November 2013 Christian Grece European Television and On-demand Audiovisual Markets Analyst
2 The European On-Demand landscape
3 2459 ON-DEMAND AUDIOVISUAL SERVICES ESTABLISHED IN THE EU (April 2013) Source : European Audiovisual Observatory / MAVISE database Branded channels Catch up TV News / VoD Generalists VoD Music VoD Films VoD Fims + TV VoD TV fiction VoD documentary vod children Archives Trailers Sport VoD Adult Various SK SI SE RO PT PL NO NL MT LV LU LT IT IE HU HR GR GB FR FI ES EE DK DE CZ CY
4 NUMBER OF FILM VOD SERVICES BY COUNTRY OF ESTABLISHMENT (April 2013) Source: European Audiovisual Obseravtory MAVISE database 100 and 125 film VoD services established in US targeting Europe (May 2013) LU GB FR SE DE NL CZ BE ES PL DK IT SI RO BG FI HU AT GR PT CY IE LT LV EE SK MT CH Film VoD services for the national market Film VoD services targeting foreign market(s)
5 48% OF VoD SERVICES IN THE EU ARE UNDER US CONTROL (APRIL 2013)
6 EMERGENCE OF APPS FOR VoD FILMS SERVICES OR CATCH UP OF FILM TV SERVICES ON CONNECTED TV STORES AND/OR ON TABLET/SMART PHONE STORES è Future of TV and cinema as an App on multiple distribution platforms?
7 THE EMERGENCE OF FILM AND TV SERIES SVOD NUMBER OF SVoD SUBSCRIBERS (end 2012/ early 2013) Lovefilm (EUR) Netflix (UK) Canalplay Infinity (FR)
8 THE INVESTMENT OF US LEADING VoD SERVICES INTO PRODUCTION : MORE SERIES THAN FEATURE FILMS, an ongoing trend Netflix ($2 billion a year for licensing and creation of content, $5.7 billion long-term contents commitments (licensing and creation)) + maybe Original Movies Exclusive deals with Disney/Marvel, DreamWorks Animation for content House of Cards $100 million (>$4.5 million per episode) Hemlock Grove ($4 million per episode) Orange is the new Black (just under $4 million per episode) And semi originals: Arrested Development, The Killing And Netflix US: 20% of European content (films and movies) in catalogue (Netflix, Hearing European Commission on Article 13) Amazon LoveFilm (Alpha House, Betas released in 2013) 14 new pilots made available for streaming in April 2013 Hulu ( $500 million for creation of original content and acquisitions of content) YouTube Original channels - $100 million for roughly 160 channels/content partners + $200 million planned Intel (planned VoD services, including investment in content - Amount not disclosed, rumoured $2 billion) Crackle (Sony) : 8 original series in 2013 originals including season 2 of Jerry Seinfeld s Comedians in Cars Getting Coffee Microsoft TV under the Xbox brand Xbox Entertainment Studios Microsoft hired a number of Hollywood veterans, to run its Xbox Entertainment Studios. Millions and millions of dollars to spend on original content. Set up a production studio in Santa Monica where employees are developing original content to compete with cable and other streaming services.
9 Future developments. Ø Can SVoD services compete in the long term with pay-tv providers through original programming and exclusive licensing? (HBO 28.7 millions subs/netflix 30 million subs in the US) Ø Cord cutting or co-existence with pay-tv/cable? (Netflix carried on Virigin Media in the UK and Com Hem in Sweden / 90% of US households pay for TV but an estimated 4.7 million will cut the cord in 2013) Ø Reduction of release windows for movies on VoD services? (move windows up after theatrical release for movies produced under $30 million, day-todate?) Ø Importance of digital distribution platforms for smaller VoD services and European films as distribution moves more and more towards apps? Ø Importance of non-eu VoD services for EU films? An opportunity? (10 main non-european markets represented 19% of world-wide admissions for EU films in 2010, EAO Theatrical export of European films in 2010) Ø Towards an oligopoly of VoD services without regulation? (Netflix/Amazon/Hulu in SVoD, itunes/xbox/sony in TVoD, YouTube in AVoD? Monopolistic competition?)
10 Thank you!
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