Summary

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:
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.

Table of contents

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

List of tables and figures

List of tables and figures

Tables
Table 1: Average price comparison of four TVOD services for selected movies and series, France, February 2016
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

Figures
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

Geographic area

Europe
  • France
  • Germany
  • Italy
  • Spain
  • United Kingdom
North America
  • United States

Players

  • ABC on-demand
  • ALL-IN Movie&TV
  • Amazon
  • Arte VOD
  • AtresPlayer Videoclub
  • BBox VOD
  • BT
  • Canalplay
  • Catalogo R
  • Cineclick
  • Cinema Monatsticket
  • Clipfish
  • Club Vidéo SFR
  • Crunchyroll
  • El Corte Inglés Cine Y TV Digital
  • Euskatel Videoclube
  • Filmin
  • Filmotech
  • FilmoTV
  • FnacPlay
  • GooglePlay
  • HBO Now
  • Hulu
  • Iminéo
  • iTunes
  • Maxdome
  • Microsoft Store Movies & TV
  • Movistar Videoclub
  • Movistar Videoteca
  • MUBI Europe
  • MYmovies Live
  • MyTF1 VOD
  • Netflix
  • Nolim Films
  • ONO Videoclub
  • Orange
  • Orange Videoclub
  • PlayStation Video
  • Pluzz VOD
  • Popcornflix
  • RégloTV
  • Sky Now
  • Televeo
  • TIMvision
  • Universciné
  • VideoFutur
  • Videoload
  • Videothek Unitymedia
  • Viewster
  • Virgin Media
  • Vodafone Videothek
  • Watchever
  • Wuaki.tv
  • YOMVI

Slideshow

Typology of pay services and market positionings of offerings
• Pricing models & price positioning
• Means of interaction with rights holders
• Service positionings

Competitive positioning
• SVOD: primary growth driver for video-on-demand
• The United Kingdom: the market leader in Europe
• Germany and France: developing markets
• Italy and Spain: emerging markets
• The United States: the largest VOD market worldwide

Profitability conditions
• Growth factors
• Different challenges depending on the type of service and player

Other details

  • Reference: M16256MRA
  • Delivery: on the DigiWorld Interactive platform
  • Languages available: French, English
  • Tags: Download To Own, Download To Rent, DTO, DTR, Electronic Sell-Through, FTA television, on-demand consumption, on-demand services, pay-TV, right holders, subscription video-on-demand, SVOD, transactional video-on-demand, TVOD, TVOD service providers, Video on demand

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