Published March 7th, 2019
Over the past few years, online video services in Europe have experienced rapid growth, particularly those that follow the subscription revenue model. Global players such as Netflix, Amazon and HBO went direct-to-consumer, disrupting the previous long-term relationship between subscribers and multichannel operators.
Soon after Netflix began showing signs of success in North America and Western Europe, pan-European satellite operator Sky launched its own stand-alone online video service in the UK, combining on-demand content with live streaming TV networks in 2012. Others followed, such as Canal+ with Canalplay in France and Telecom Italia with TIMVision in Italy.
Currently, five services accounted for 89 per cent of the $6 billion in consumer spending attributed to subscription online video services, according to a report published by Kagan, a media research group within S&P Global Market Intelligence.
More proof of just how dominant Netflix is in Europe comes from new data by analysts at S&P Kagan. According to new research from Kagan, Netflix accounted for 52% of all subscription VOD revenues in Europe at the end of 2018.
With 52% of all SVOD revenues in Europe, Netflix is comfortably ahead of all competitors. Amazon Video is a distant second with 21%.
In terms of active paid subscriptions, Kagan revealed that Netflix is responsible for 52 per cent of total revenue, followed by Amazon Prime Video (21 per cent), Sky (four per cent), HBO (three per cent) and Viaplay (three per cent).
Parks Associates research has found that OTT video services have transitioned back into the home's living room, with a majority (52%) of U.S. broadband households now watching online video on a TV that is connected to the internet.
Its report, 360 View: Digital Media and Connected Consumers, also found that watching TV or films at home is the most popular leisure activity among US broadband households, with 55% selecting this among their top two favourite leisure activities.
"While the total number of hours consuming videos has declined, consumers are watching more internet video on the largest screen available," said Billy Nayden, research analyst, Parks Associates. "The number of hours consumers report watching video on a TV increased for the first time since 2014, with connected devices enabling internet video services on TV and shifting consumers away from PC and mobile viewing. As OTT competition becomes a battle for the living room, the challenge for device makers and content producers is finding the correct product mix to maximise both profit and utility."
The report also found that subscriptions are the dominant business model for OTT services. As more services emerge, many stakeholders fear an impending subscription overload in US households.
"As consumers' taste for OTT experimentation wanes, they will start to resist the push to add another monthly subscription to their households," Nayden said. "Many providers are starting to lead with freemium and ad-based models, in anticipation of this pushback."
Parks Associates also found that 19% of consumers subscribe to either Netflix, Hulu, or Amazon Prime Video and another OTT service, compared to 13% in 2017; and overall, consumers watched 25.7 hours of video per week in 2018, down from 29.5 hours per week in 2016.
Source: Rapid TV News & Parks Associate
Nov 15, 2019
Congratulations to KPN, who today launched their Smart TV App on LG TVs in the Netherlands. The app, which was created by 24i, allows KPN subscribers to watch, pause and record live TV programs, catch up on what they have missed and easily search and discover more of their favourite content - all without the need for a set-top-box.
“Earlier this year, we created KPN’s first Smart TV app for Samsung TVs which was a major milestone in offering their customers even more choice and convenience. The launch on LG fits in with KPN’s mission to provide the best TV experience possible and we are proud to be able to help deliver on that promise,” said Martijn van Horssen, joint CEO, 24i.
Built upon the 24i Video Experience Platform, KPN is able to continuously improve and adapt its Smart TV apps and experience based upon customer behaviour, choice and preferences. The app can be used by KPN customers who have an internet and TV subscription and have a recent model of Smart TV from Samsung (from 2017) or from LG (from 2017).
You can read the news release (Dutch) from KPN here
Nov 20, 2019
What features does a video platform need to make a direct-to consumer video service successful? The EVP of Business Development at Pure Flix tells Colin Dixon of nScreenMedia what they needed, how they got it, and how well it is delivering.
Join us on November 21 st at 11 AM, for a free webinar "Driving D2C Scale and Efficiency: How Pure Flix retooled its video platform for success
Nov 20, 2015