evolution of the vod market in europe workshop europa distribution paris, 7th july 2009 andré lange...
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Evolution of the VoD market in Europe
Workshop Europa Distribution
Paris, 7th July 2009André Lange
Head of Department
Information on Markets andFinancing
European Audiovisual Observatory
2
LEGAL EUROPEAN DEFINITION OF « AUDIOVISUAL MEDIA SERVICE ON DEMAND »
Directive SMAV (11 December 2007)
• "on-demand audiovisual media service" (i.e. a non-linear audiovisual media service) means an audiovisual media service provided by a media service provider for the viewing of programmes at the moment chosen by the user and at his individual request on the basis of a catalogue of programmes selected by the media service provider”
3
Article 1(a) of the Directive : 7 criteria necessary to identify an audiovisual media service on demand
1. There should be a service, i.e. an economic activity
2. The service should be under the editorial responsibility of a provider of an audiovisual media service
3. The service should have a public dimension
4. The service should aim to inform, entertain or educate the public in general
5. The main objective of the service should be the delivery of programmes
6. The service should be audiovisual
7. The service should be delivered by electronic communication networks
4
Definition of the provider of audiovisual media service (Article 1d of the Directive)
• “Media service provider" means the natural or legal person who has editorial responsibility for the choice of the audiovisual content of the audiovisual media service and determines the manner in which it is organised ».
Practical question for the statistician : how to identify the provider ?
Confusion between the provider of the service and the distributor
Frequent situations of « partnership »
How to consider partners channels on Youtube ?
5
TRANSPARENCY ISSUES
• Identification of the VoD provider• Catalogue analysis• Households expenditures• Companies VoD revenues• Analysis of revenues flows
• > Report Attentional on the implementation of article 3 and 4 of the TWSF Directive includes analysis on the difficulties of monitoring the VoD market
• > Need for an European regulation ?
6
TECHNICAL MODELS OF ON-DEMAND SERVICES
Source : NPA Conseil
7
FILM IMMEDIATE DOWNLOAD POSSIBLE ON THE NEW iPhone 3GS THROUGH ATT Wifi, LAUNCHED IN USA June 19 2009
8
RESPECTIVE ADVANTAGES AND DISADVANTAGES OF DELIVERY PLATFORMS
PLUS MINUS
Internet - B to C model
- Editorial possibilities, search possibilities- Customized marketing- Allows niche strategies- Allows international strategies- Allows larger catalogues
- Viewing most often on PC screen- Breaks in the quality of service- Slow to download- Risks of piracy- Services most often not accessible on MAC
IPTV - Viewing on TV set- Existing basis of subscribers (different according countries)
- Capacity limits (>FTTH)-- EPG rather slow and not user friendly- More difficult of access for independent producers and niche programmes- Smaller catalogues than on Internet services
Cable - Viewing on TV set- Existing basis of subscribers (different according countries)
-Cost of digitization of networks-More difficult of access for independent producers and niche programmes- Reduced catalogues
Satellite
and DTT
- Viewing on TV set- Existing basis of subscribers (different according countries)
-No return path-Needs storage on PVR-More difficult of access for independent producers and niche programmes- Reduced catalogues
9
THE CHALLENGE OF VoD ON THE TV SCREEN
• VoD in the framework of cable or ADSL triple play offer (IPTV)
• VoD through PVR• Hybrid PVR – IPTV systems (Canalsat, Viasat)• Dedicated set-top box
– Apple TV, Vudu,…
– Maxdome,
– FNAC/Netgem
– CANVAS project of British PSB broadcasters and BT)
• Cable ipod > TV Screen• Web enabled TV set (The Yankee Group expects 50 million people will have Internet
connected HDTVs by 2013. Another 30 million, they say, will have connected Blu Ray players – and 11 million will have purchased media adaptors.
10
DIGITAL HOUSEHOLDS BY KIND OF PLATFORM(31.12.2007)Source : OBS
0%
20%
40%
60%
80%
100%
IPTV
DTT
DTH
CATV
IPTV 0,8% 1,2% 24,7% 2,9% 4,7%
DTT 44,1% 23,7% 39,5% 55,0% 70,6%
DTH 40,3% 58,4% 28,8% 42,2% 17,0%
CATV 14,8% 16,7% 6,9% 0,0% 7,7%
GB DE FR IT ES
11
PENETRATION OF BROADBAND, DIGITAL CABLE AND IPTV (2007) % of householdsSource : Screen Digest / OBS
0%
10%
20%
30%
40%
50%
60%
DE ES FR GB IT
BroadbandCableIPTV
12
NUMBER OF VoD SERVICES IN 24 EUROPEAN COUNTRIES (2002-2008)Source : NPA Conseil
110 21
61
142
258
325
0
50
100
150
200
250
300
350
2002 2003 2004 2005 2006 2007 mid-2008
13
NUMBER OF ON-DEMAND AUDIOVISUAL SERVICES IN
EUROPE (December 2008): 691 services Source : OBS
0
20
40
60
80
100
120
140
160
GB FR IT DE NL BE ES SE NO DK PL FI HU CH IE RU AT CZ SK TR EE LU IS CY RO GR PT SI BG LV
TNT
Satellite
Câble
IPTV
Internet
14
BREAKDOWN OF ON-DEMAND SERVICES IN EUROPE BY KIND OF NETWORK (December 2008)Source : OBS
56,5%30,1%
7,2%
2,6% 3,6%
Internet
IPTV
Câble
Satellite
TNT
15
PROVIDERS OF ON-DEMAND AUDIOVISUAL SERVICESIN EUROPE
- Telcos: T-Online, France Telecom, Belgacom, Telecom Italia, Telefonica
- ISP: Fastweb (IT), Arcor (DE), Absolut Medien (DE), Tiscali (GB)- Cable operators: Telenet, ntl, Telewest, ONO, Casema- Broadacsters : Canal+, TPS, TF1, RAI, RTLNederland, FT2,
ARTE, M6, BBC, Premiere, ProSiebenSat1, Sky, Mediaset,…- Film groups : SF (Svensk Filmindustry), MK2, Filmax- Producers associations : Universciné, FIDD- Archives Film & TV : British Pathe, NFI, INA- Video publishers: TF1 Video, Editions Montparnasse- Retailers : Lovefilm, Virgin, Glowria, Carrerfour- New companies (agregators) : Cinezime, 4friends, Live
Networks, Videonetwork…- Copyright collecting societies : SGAE, EGEDA- Manufacturers : Apple, Archos, Microsoft, Nintendo- Specialised services : Arts Alliance Media Ltd
16
BREAKDOWN OF PROVIDERS OF ON-DEMAND SERVICES BY PRIMARY ORIGIN (December 2008)Source : OBS
Telcos17,7%
Cable opérators3,9%
Satelitte/DTT packagers1,9%
Content agregators13,3%
Film companies3,9%
US Majors subsidiaries9,1%
Video publishers3,0%
TV producers3,0%
Manufacturers1,7%Retailers
4,1%
Copyright societies0,6%Services
2,2%
Archives1,1%
Broadcasters34,5%
17
MARKET POSITIONS OF THE VARIOUS PLAYERS
PLUS MINUS
Telcos, ISPs,Cable
- Financial capacities- Technological expertise- Triple play offers- Management of subscriptions and tracking of demand
- No great experience in the field of rights- Necessity of accessing leading catalogues- Necessity of working with agregators
Broadcasters - Financial capacities- Good position on the rights market- Experience in audience measurement, pay-TV, DVD market- Brand- Catch-up formulas, archives
- Less financial capacities than telcos- Dependent from distributors (delivery)- Negotiations with producers- Competition rules
Retailers - Knowledge of the consumers practices- Brand
- Less financial capacities than telcos- Difficult access to IPTV delivery- Competition with their own « brick and mortar » services
Aggregators, distributors
- Experience in rights management- Possible pan-European strategies- Niche catalogues
- Less financial capacities than telcos- Difficult access to IPTV delivery
18
MANUFACTURERS (Apple, Microsoft, Sony, Nintendo,…)
• Strategic advantage : main objective is the sale of hardware• Possibility of offering good conditions to rights owners and
to increase rapidly the catalogue• Possibility of opening « channels » to other providers• Cumulating position of provider and distributors of third
services• Common platform for films, TV programmes and
videogames• Worldwide players
19
iTUNES STORE SUCCESS Source : Apple Inc. (data provided without geographical breakdown)
• 1 million videos sold as at 31.10.2005 (20 days after the launching)
• 8 millions videos sold early January 2006• 15 millions videos sold as at 23.2.2006• 50 millions TV shows and 1.3 millions films sold as at
10.1.2007• 2 millions films sold as at 11.4.2007• 200 millions TV shows sold as at 16.10.2008
20
USA – SHARE OF DIGITAL TRANSACTIONS FOR FILMS (2008)Source : Screen Digest February 2009
iTunes Stores
53%
Others14%
XBox Live Video
Marketplace33%iTunes
87%
Others13%
21
iTUNES STORES EUROPEAN TURNOVER (2005-2007) EUR millionSource : iTunes S.AR.L.
53
132,2
224,5
0
50
100
150
200
250
2005 2006 2007
22
VoD STRATEGIES OF THE VARIOUS CATEGORIES OF FILM PRODUCERS IN EUROPE
Majors US - Blockbusters and library « long tail « - Agreements with local providers of VoD services- No exclusivity - No direct investments in Europe- No pan-European deals
National film groups - few blockbuster, « long tail » libraries»
- Agreementts with local providers of VoD services- No exclusivity- Almost no direct investment (SF, MK2)
- VoD international sales through agents
Independent producers - Mainly « long tail » catalogues- Regroupment strategies with aggregators
(Universine, Filmotech,…)- Niche strategies, sometimes international- Looking for IPTV and cable access- Support of MEDIA 2007 Programme
Broadcasters - Catch-up TV - Difficulties in exploiting archives- Some operators have films catalogues- Mainly Internet services
- Alliances with YouTube, DailyMotion,…- Difficulties in accessing cable and IPTV
23
BUSINESS MODELS
• Digital rental (24 hours > 48 hours)– 1 title (1,5 to 6 EUR)– 1 pack (Credit)
• Sale (“Download to own” DTO)- Download to PC (5 to 15 EUR)- Download to burn (15 to 20 EUR)
• Online subscription VoD (SVoD)
• Free VoD : financed by advertising (MSN, Myvideo,…) or licence fee (BBC iPlayer)
• Catch-up TV of film pay-TV channels (Canal+, Canalsat, SkyPlayer, TopUpTV Anytime,…)
24
FRANCE : 8 leading services supply 3959 films (2753 in 2007, + 48,9 %) Source : CNC
US36,5%
French43,6%
European 14,0%
Others5,9%
25
FRANCE : Characteristics of VoD catalogues of the 8 leading servicesSource : CNC
• Recent films (<12 months) : 2,8 % of the total supply• New films (<36 months) :
– French : 47,3 %– US : 30,7 %– European : 15,2 %
22,7 % of films in VoD have realised more than 1 million admissions
63,8 % have realised less than 500 000 admissions50,3 % of films are classified « Art et essai »
95,4 % are feature films 2,6 % are animation 2 % are documentaries
26
FRANCE : Availability of films by number of platformsSource : CNC
2087; 52,7%
971; 24,5%
511; 12,9%
390; 9,9%
1 platform
2 platforms
3 platforms
4 platforms or +
27
FRANCE : VoD IN FRONT OF OTHER CONSUMERS PRACTICES1st Semester 2007/2008
Sources : CNC, ALPA/Thomson, GfK/CNC, Gfk/NPA
94,24
100,9
76,5
55,9 53,28
3,7 6
0
20
40
60
80
100
120
Admissions Unauthorizeddowloads
Sales DVD (units) Legal VoDtransactions
1er half 20071er half 2008
28
FRANCE – EVOLUTION OF HOUSEHOLDS AUDIOVISUAL EXPENSES (2004-2008) EUR millionSource : CNC
0
500
1000
1500
2000
2500
3000
3500
4000
2004 2005 2006 2007 2008
Pay-TV (C+,cable/satellite)
Licence fee
Home vidéo
Box office
VoD
29
UNITED KINGDOM : UK film revenues (2004-2008) Millions £ Source : UK Film Council 2009 Statistical Yearbook (forthcoming)
0
200
400
600
800
1000
1200
1400
1600
1800
2004 2005 2006 2007 2008
Home video retail
Film on TV
Box office
Home video Rental
Film on VoD/nVoD
30
VISITS AND PAGES VIEWED ON MAXDOME WEBSITE (2007-2009)Source : UVW
0
5 000 000
10 000 000
15 000 000
20 000 000
25 000 000
30 000 000
35 000 000
mai-07 September2007
Januar2008
mai-08 September2008
Januar2009
mai-09
Pages viewed
Visits
31
GLOBAL ON-DEMAND REVENUESFORECAST 2012 - Includes nVoD - Euros BillionSource : Screen Digest – January 2009
North America; 7,5
Europe; 3,3
Asia-Pacific; 1,5
0
1
2
3
4
5
6
7
8
2012
32
CABLE vs IPTV VoD REVENUES IN WESTERN EUROPE – Euros millionSource : Screen Digest – January 2009
0
100
200
300
400
500
600
2005 2006 2007 2008 2009 2010 2011 2012
IPTV
Cable
33
Number of illegal film download (June 2009)Source : MARC
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000United Kingdom
United States
France
Canada
Italy
Spain
Brazil
Netherlands
Poland
Norway
34
QUESTIONS FOR THE DEBATE
• How to fight online piracy ?
• Films in iTunes Stores in more EUR countries ?
• Strategic importance of HD VoD ?
• Is the shortening of the windows a real threat for cinema-going ?
• Will VoD kill the video rental business ?
• How to ensure pre-eminence of European films in VoD catalogues ?
• Is the multi-territory licence a key issue for the development of a pan-European VoD market ?
