31Jan/170

European TV networks looking beyond broadcasting and fine tuning their OTT strategy

LEBORGNE-Florence_NB

Florence Le Borgne,
Head of the TV & Digital Content Practice, IDATE DigiWorld
Contact

The creation of a pan-European alliance in mid-January between three major commercial TV companies – ProSiebenSat.1, TF1 and Mediaset – around OTT video specialist, Studio71, is a strong indication of veteran players’ new strategies, built on international partnerships and digital diversification.

Traditional TV networks are having to contend with a whole new landscape: one where the competition, the screens and even the consumers have changed, and where longstanding business models are now being threatened. They have no choice but to evolve as well, to hold their own amidst this groundswell.
Every major media company has therefore developed – either voluntarily or in reaction to competition – an OTT strategy that typically includes distribution online, on mobile devices and on televisions via connected devices.
Approaches nevertheless vary from player to player.
•    All now offer catch-up TV services, which may include the ability to simulcast linear programming.
•    Few offer transactional VOD services, regardless of whether they offer just their own content or broader libraries.
•    There are a good number of monthly subscription VOD plans available, but this encompasses a wide range of products:
o    generalist SVOD services;
o    thematic SVOD services ;
o    OTT versions of premium channels;
o    Or paid access to simulcasts of linear over-the-air networks (with catch-up offered for free).
•    Lastly, a few players are developing an OTT strategy that is built not on their usual content, but rather on creating original content that will be distributed solely online.
It is into this last category that the deal announced on 12 January falls, whereby France’s TF1 and Italy’s Mediaset have acquired, respectively, a 6.1% and 5.5% stake in Studio 71 – a subsidiary of German media company, ProSiebenSat.1, created in 2013 – worth a total of around 53 million EUR. According to the Mediaset press release, this alliance is being formed “with the aim of creating Europe's most important operator in digital talent in close synergy with generalist television”.
Distributed on the leading video sharing platforms, the content supplied by Studio71 generates more than 6 billion views a month on YouTube alone, through more than 1,200 channels, and reports 405 million registered users worldwide. For TF1, this new deal is geared to allowing the French media company to become “a benchmark online video player in France across all platforms by developing content targeted at millennials”. This generation of viewers has become a prime target for the French conglomerate which already acquired a majority share of Minute Buzz in December 2016, and is heavily focused on building up its social media presence to reach younger viewers.
Faced with the threat that Netflix and Amazon represent on the international online video scene, this European partnership will enable the three commercial TV broadcasters to go after revenue outside their traditional field of operation, by combining the strength of local brands and Studio 71’s global audience. This deal should thus enable TF1 Publicité (advertising) to shore up its ability to reach new audiences, and to consolidate its position as “France’s No. 1 content marketplace”. Similarly, Mediaset – for which this deal is the first major move from its new digital division – views this alliance and an opportunity “to maximize the distribution of Mediaset TV contents on internet and to boost synergies between TV and web.”

synthese_positionnement_OTT_groupeProsiebensat media SE

Another noteworthy move comes from Scandinavia’s Modern Times Group which, on 25 January, announced that it was selling its share in Czech free-to-air broadcaster, Prima, in order to finance its investments in the group’s digital transformation, starting with increasing its stake in German online game developer, InnoGames, from 21% to 51%. According to MTG President and CEO, Jørgen Madsen Lindemann, “The investment is in line with MTG’s digital strategy to invest in relevant, complementary and scalable digital content and communities. It creates a third digital entertainment vertical for MTGx alongside its eSports and MPN businesses”.
If these areas of diversification are still far from rivalling these European heavyweights’ traditional businesses, the growing number of strategic actions targeting OTT video is a clear sign that veteran TV networks are looking beyond broadcasting. Their future is inextricably bound up with the shift to OTT and building a global footprint: to continue to exist locally, they need to think globally.

To delve deeper into leading media companies’ OTT strategies, check out our latest market report

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15Dec/160

Future TV 2025 : who will win?

BAJON_Jacques

Jacques Bajon,
Director of Media and Digital Contents Business Unit, IDATE DigiWorld
Contacter

In developed countries, the audiovisual sector is experiencing a period of relative stagnation, which will probably be long-term and therefore lead to many challenges for players in the ecosystem. Although the Internet is the major cause of disruption, there are many factors at play.

IDATE DigiWorld drew up 4 scenarios in the last report “Future TV 2025” based on the market environment evolution and the new competitive situation analysis:

Landscape  market evolution 

• Fundamental regulatory choices: confirmation of Net neutrality, reconciliation of obligations for linear and non-linear services, reform of regional rights allocation.

• Heterogeneous global growth: emerging markets driving growth.

• IT playing an increasing role in video distribution: 'centralisation' with the cloud, the growth of streaming, the growing role played by captured consumer data.

• Increasingly significant personalised video consumption, on-demand and multi-screen ('TV as a service').

The new competitive situation

With an increasingly influential Internet sector, through pure players quickly establishing themselves in the market, accentuating the phenomenon of disintermediation of established players.

Content is more than ever king and ownership of it is crucial, hence increased competition with exclusive premium content is sending rights prices soaring, and new financial backers of original production are emerging.

Also, the market is experiencing a period of concentration (both horizontal and vertical), driven by restructuring of the telecom operators market and the race for control of content.

In this way, new forms of monetisation are appearing in an environment where pay-TV is experiencing downward pressure due to the polarisation between premium and low-cost, the role of service bundles, the development of programmatic advertising and freemium models.

The Trend scenario: a 2,4% expected global growth per year by 2025

The Trend scenario assumes that 2010-2016 trends will continue. In this scenario, the major determining factors are stable. On-demand consumption of audiovisual services continues to grow without destabilising the linear market. The regulatory status quo maintains a local approach to markets. Finally, we see a steady rise in influence of OTT players.

This scenario corresponds to slow growth of the global market, 2.4% per year on average:

• Growth driven primarily by emerging countries

• Stagnating Western European and North American markets

• An evolving market landscape

Four scenarios forecasted

schema_future_tv

Three others scenarios have been forecasted, each is in favor the stakeholder kind in particular:

“Convergence” scenario: In the Convergence scenario, TV-Internet-telecom bundled offerings predominate. They enable better prices to be offered and provide a complete range of linear TV and on-demand services, as well as music and games services. Multiscreen consumption, fixed and mobile, is pushed by one (or many) of the operators, providing permanent connectivity to the range of services.

“Disruption” scenario: Personalised video consumption predominates in the Disruption scenario, with more uniform consumer tastes on a global scale. The barriers to worldwide content distribution have collapsed, along with local content regulations. Global players controlling content rights have appeared. The leading Internet players (e-commerce, viral platforms and social networks) play a central role, offering a blend of premium and professional UGC content. The value of the market is under pressure within an oligopolistic OTT video sector on a global scale.

“Syndication” scenario: The Syndication scenario is the most cooperative and most favourable to the TV sector. Similar to how local television stations are affiliated with national 'networks' in the United States, television companies could become affiliated with large national and regional 'entertainment operators', relying on the common core of content they provide, and providing market expertise, relationships to national advertisers, local programming, and their brands and customers in exchange. This transformation takes place in both the broadcast and OTT sectors.

 Discover the perspectives, key trends, and scenarios about the TV market through our dedicated report

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9Nov/160

Creating a single television market: Is harmonising copyright the only issue at hand?

LEBORGNE-Florence_NB

Florence Le Borgne,
Head of the TV & Digital Content Practice, IDATE DigiWorld
Contact

If directive 2001/29/EC harmonise copyright across the European Union, this does not mean that rights owners enjoy a single system of copyright protection throughout the EU. Their coverage is in fact an assembly of national rights whose geographic scope continues to be confined to the Member State that grants them.

At a time when more and more consumers are watching videos on mobile devices, and expect to be able to do so anywhere, anytime, the territorial aspect of copyright creates problems when it comes to cross-border access and the portability of this content. According to the European Commission, the ability to access a video service in another Member State is guaranteed for less than 4% of all VoD content in the EU. Moreover, for copyright reasons, consumers are often unable to continue to access a VoD service they subscribe to at home when travelling in another European Union country.

The territoriality of copyright is, however, far from being the single obstacle to the development of cross-border services. At the top of the list of other hurdles is the national exclusivity imposed by rights owners to secure pre-financing for their content, along with:

• the costs and constraints bound up with the need to employ multilingual staff to provide customer service;
• different national regulations on private copies, consumer protection, the protection of minors, taxation,
distribution windows, etc.;
• subtitling and dubbing costs;
• the cost of localising marketing campaigns;
• the lack of technical standards for distributing content;
• low broadband availability and/or adoption levels in some countries;
• the lack of demand for cross-border services.

A less ambitious plan, which aimed only to guarantee the portability of content across Europe, would seem more realistic. For service providers, this would mean negotiating a clearly defined exception with rights holders, and providing a clear framework for the territoriality of rights, to be able to allow their customers to view their programmes wherever they are in Europe.

flb_insight_tv_video_forum_dws16

 

DELVE DEEPER WITH THE FOLLOWING IDATE DIGIWORLD MARKET REPORTS
TV in the Digital Single Market: Impact of current regulatory changes on the audiovisual value chain, Dec. 2015
World TV & Video Services Markets: Terrestrial - Satellite - Cable - IPTV - DVD - Blu-ray - Video on demand, Dec. 2015
Video-On-Demand: Europe’s main markets in the aftermath of Netflix world conquest, May 2016
Video Solution Providers: Towards Software-Defined Video, Jul. 2016

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28Sep/160

DigiWorld Summit: The Digital Trust Economy

Logo-DWS2016_WEB400x150

Debate over the crucial role that trust will play in the digital economy’s future

 

The 38th annual DigiWorld Summit will run from 15 – 17 November 2016, and have as its central theme: The Internet of Trust. It will be an opportunity to engage in a meaningful international debate over digital trust issues – starting with security and privacy – which have become major sources of concern for all of the ecosystem’s stakeholders.

As the number of reported cyber-attacks worldwide is growing by close to 40% a year, we expect that upcoming stages in digital technologies’ evolution will only amplify the phenomenon. And this to such an extent that any future scenario is possible: from a continuation of the current chaos to a breakdown in trust that would lead to the construction of a new digital economy, which will no doubt differ in many respects from the one we know today.=

Are we reaching a tolerance threshold for online trust?
How can veteran digital industry players (equipment suppliers, telcos, IT companies) capitalise on the current climate?
Are verticals threatened by the situation or, on the contrary, on the winning side of trust and security issues?
Do we need a new regulatory framework to govern, or reassure, market players and consumers?

> Including the 120 speakers on this edition:
•    Eva BERNEKE, CEO, KMD
•    Anne BOUVEROT, CEO, Morpho
•    Isabelle FALQUE-PIERROTIN, Chairwoman, CNIL
•    Pierre, CHAPPAZ, Co-founder & Executive Chairman, Teads
•    Didier LAMOUCHE, President & CEO, Oberthur
•    Joseph LUBIN, Founder & CEO, ConsenSys, Co-Founder Ethereum
•    Carlos LOPEZ BLANCO, Global Head, Public and Regulatory Affairs, Telefónica
•    Stéphane RICHARD, Chairman & CEO, Orange
•    Corrado SCIOLLA, President Europe, BT Global Services
•    Nicolas SEKKAKI, CEO France, IBM

Choosing the theme for the 2016 DigiWorld Summit came about quite naturally. The vast majority of IDATE DigiWorld were eager to tackle the topic of trust.
For some time now, trust has been recognised as a vital ingredient in the success of a brand, an economy or a society. This is all the more true in a world being transformed by digital innovation. In its scenarios for 2025, IDATE DigiWorld underscored that trust was one of the key variables in tomorrow’s digital ecosystem. To shore up this belief, we need only look at some recent headlines:

•    the cyberattacks against telcos, TV networks and government agencies,
•    the legal wrangles between Apple and WhatsApp and government authorities wanting access to the encryption key for the devices or messages;
    the very drawn out European Union negotiations over new data protection rules;
•     the end of the Safe Harbor transatlantic agreement and ensuing debates over the new Privacy Shield;
    questions over the dangers surrounding connected/driverless cars, and the growing ubiquity of the IoT in general;
    the ad–blocking phenomenon;
    questions over what impact multiple FinTech solutions will have on the soundness of the banking system, and blockchain’s ability to replace today’s trusted third parties;
So trust is a focal point for telcos, cloud computing companies, Internet giants, start–ups, governments and regulators, but also for every economic sector across the board, not to mention consumers and citizens.
And, as always, acknowledging risk must not prevent us from also analysing opportunities, in terms of innovation, differentiation strategies and the competitive advantages available to many market players.

Once again this year, the vital meeting place that this international conference has become, will include plenary sessions that will provide a springboard for a series of high–level specialty forums.  These forums are an opportunity to delve deeper into the main trends we expect to see in mobile networks with the advent of 5G, ultrafast broadband, the Internet of Things, the TV market’s transformation in Europe, FinTech, video games, the digital promise in Africa and what makes a smart city.

A unique international forum for debate and networking

> DigiWorld Week
A week devoted to understanding what makes our new digital world tick (12 – 20 November 2016)
> The DigiWorld Awards
Recognising the best digital start-ups created by French entrepreneurs abroad

Key facts & figures

Europe’s trailblazing conference on the digital economy

The DigiWorld Summit is an annual event organised and hosted by IDATE experts, with the support of DigiWorld Institute members. Every year it holds ultra high-level international debates on the core issues shaping the digital economy, with the finest speakers and industry insiders.

Participants: 1,200 participants at the DigiWorld Summit and more than 5,000 at DigiWorld Week
Speakers: 120 speakers from around the world; 400 at DigiWorld Week
Partners and sponsors: over 100 partners and sponsors (businesses, public sector, media…)
Social media: 15,000 tweets (trending topics) and 2,000 live followers

For more information, visit our website: www.digiworldsummit.com

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14Sep/160

DigiWorld Research Market Watch Service

Gassot-Yves

Yves Gassot,
CEO, IDATE DigiWorld
Contact

How to keep up with the fast-paced changes in our industries without being buried by the avalanche of news which, every day, urges us to read about some new important disruption? On a more practical level, how to gain access to vital data, benchmarks and preliminary independent analysis to begin planning a project or considering a market?

 

Thanks to its teams of highly qualified consultants and analysts, IDATE DigiWorld is able to deliver a complete set of telecoms, Internet and media market watch services.

I hope you’ll allow me to use this month’s editorial to highlight how invaluable these services can be, taking as examples three reports on timely and crucial topics that were published by our teams this summer:

How much importance should be given to pioneer user experiences and the first LTE plans for fixed services? This report that was just published by Carole Manero ("LTE for fixed access: the next big thing ?") takes a look at the factors that make for a more credible solution after the failures of LMDS and WiMAX… but also taking into account Google’s recent announcement that it could be scaling back spending on Google Fiber projects in the US, to focus instead on wireless solutions, and the news that AT&T and Verizon do not have the national carrier status when it comes to deploying LTE or even 5G fixed wireless products, based on early trials.

Sport: live TV’s last bastion? Florence Le Borgne seeks to answer this question in her report entitled, ("Sport content: TV vs. OTT") – analysing the impact of skyrocketing TV rights resulting from competition between TV networks, competition from VoD and the Internet giants’ growing ambitions.

Should we expect an end to telecom market consolidation in Europe? In his report ("Telecom consolidation in Europe: toward new challenges?"), Christoph Pennings takes a look back at in-market mergers and acquisitions of recent years, and explores the paradigm shift created by (notably fixed-mobile) convergence deals, but also policy changes coming out of Brussels.

I could just as easily have cited several reports that are currently in the final production stages, on IoT, Industry 4.0, the new generation of LEO satellites, blockchain, FTTH rollouts around the globe… For more information about these upcoming reports, and our complete catalogue, visit the IDATE DigiWorld website, or contact our head of sales (j.george@idate.org) or the consultants listed earlier.

PS: -"Yves Stourdzé, explorateur et éclaireur des mondes à venir": Some of you may have noted that IDATE’s headquarters are located on "allée Yves Stourdzé". Yves, an academic who was appointed Director of CESTA (Centre for the Study of Advanced Systems and Technologies), was among those who believed in IDATE’s development and supported us in our early days. Following a symposium in Paris on his work, held at the Ministry of Research, I urge those of you who are French speakers to acquire the book entitled: "Yves Stourdzé, explorateur et éclaireur des mondes à venir" – providing insights into the man and analysis of his work, through contributions from 25 personalities. This same publisher (Sens & Tonka, www.sens-tonka.net) will also be soon releasing a new edition of the main works of Yves Stourdzé.

 

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12Jul/160

Video Solution providers: video distribution will grow by close to 25% per year up to 2020

BAJON_Jacques

Jacques Bajon, Director of Media and Digital Contents Business Unit, IDATE DigiWorld

Given, though, the tensions on unit prices, increasing internalisation and competition, the growth in value will be lower than in volumes.

 

worldwide_market_distribution_professionnal_OTT_video_traffic

The media industry has to find answers to the increasing personalisation of video consumption. This trend is firming up through the development of on-demand video services and the growing uses of personal devices. Video distribution solutions are needed for the industry, offering them:

More operational efficiency to integrate more IP in their systems;

The ability to adapt to the accelerating innovation cycles being driven by Internet players, with shorter time-to-market solutions and services;

Greater flexibility in an IP-video environment which is in constant evolution.

Alongside the traditional (broadcast) TV distribution chain, a new ecosystem has developed to tackle the needs of the Internet video delivery.

Major improvements have been made over recent years to provide a consistent OTT video experience to end users, including ABR solutions, edge-content caching, the development of software-based solutions and the increasing use of analytics. Some challenges still lie ahead, among them:

Ensuring an always-on quality of service, in particular together with the growth of video traffic and the possible advent of game-changing live-OTT streaming;

Managing the increasing complexity of media assets;

Improving the use of ‘big data’ to favour a better, and more personal, user experience and more efficient advertising.

A large consolidation process occurred in the market between pairs joining up to enhance solution line-ups and/or create end-to-end solutions, and with the verticals where large telcos and cablecos invested in video-management solutions. In turn, new trade-offs then came to the table including for operators and media groups the possible integration of some distribution technologies, the development of collaboration, the increasing use of hybrid (cloud) solutions and the option to choose externalising technical processes.

The move to more IP-based facilities is strong, such as the softwarisation of processes and tools. This shift towards software is to be concretised in a wider concept of software-defined video, which has yet to take shape on a much broader scale. A step further, the virtualisation of process in the cloud has already started.

Popular product line-ups, mainly focused on the idea of enhancing the consumer experience, include seamless multiscreen and TV-everywhere solutions which are already well advanced, unified user interfaces, cloud video recording (CVR), personalisation of video services through big data solutions and recommendation, metadata for enhanced content archiving and circulation and more. Live OTT still has to prove its feasibility on a massive scale and heavy bets are being placed on programmatic ads.

Discover the perspectives,  key trends, and scenarios about the TV market for the next decade through our dedicated report

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Filed under: TV & Video No Comments
24May/160

Video On Demand: Europe’s main markets in the aftermath of Netflix world conquest

LEBORGNE-Florence_NB

Florence Le Borgne
Head of the TV & Digital Content Practice, IDATE DigiWorld

Generally speaking, the arrival of Netflix in a new market results in increased programming costs for its competitors.

 

Using North America as an example, this trend is expected to continue and grow in the coming years, which will question the profitability of such investments.

TVOD_value_sharing

 

Service typology

There are generally three types of pay video-on-demand (VOD) services:

TVOD (Transactional Video-On-Demand) services, which include:

EST (Electronic Sell-Through), also known as DTO or 'Download To Own', is like the traditional sale of physical videograms, but in digital form.

DTR (Download To Rent) is like the traditional rental of videograms, but in digital form.

SVOD (Subscription Video-On-Demand) services, which are based on the dominant pricing model used for linear pay-TV: subscriptions

It is common for the same service to offer several pricing models.

Business models and service positioning

The transactional video-on-demand model is based on revenue sharing between the service provider and the rights holders. Contracts between these two parties can be exclusive, but rarely so. The catalogues of transactional video-on-demand services are usually very large (from 10,000 to hundreds of thousands). Although most TVOD services are non-specialised, consumption is mainly focused on movies.

The business model of SVOD is similar to that of pay-TV. Content rights are purchased at fixed price, regardless of actual consumption. The rights may be exclusive for a given period of time and territory. SVOD catalogues have tended to be available for unlimited consumption so far, including many non-exclusive and older titles (over 5 years old). Although most SVOD offerings are non-specialised, fiction series tend to be promoted and consumed the most. Original and exclusive new content is increasingly used for differentiation. There are currently two contrasting marketing strategies used: strategies based on a volume/cost ratio; and differentiation strategies based on premium or special interest positioning.

Competitive environment

The VOD sector as a whole is witnessing strong growth in Europe, driven by a large increase in the number of services emerging in most countries. Between February 2012 and December 2015, the number of services available in the EU increased by a factor of 5.7 on average.

Although the market share in value terms is still dominated by DTR in Europe (56.5% of the total VOD market), this market segment has been the slowest growing segment over the last five years (+215% on average in EU countries between 2010 and 2015). Revenues from subscription services are experiencing stronger growth: a growth rate of 1,824% over the same period. They generated nearly one-third of VOD revenues in Europe in 2015, whereas they only accounted for 7.6% in 2010.

The true start of the SVOD market in a particular country is often whenever Netflix launches there. Note that Netflix is often the main beneficiary of the rapid growth in subscribers that its launch creates. The arrival of the North American giant does, however, trigger a response from the main players in FTA television and pay-TV. It is the combination of all these elements that contributes to better awareness of these services among the general public and facilitates their adoption.

Competitive environment

The growth and success of video-on-demand services can be very different depending on the market. There are various internal factors:

the propensity for local consumers to pay for access to content;

the price differential with local pay-TV offerings;

the prevalence of piracy of audiovisual and cinematic content;

...

Find out more about the various internal factors

Various issues specific to the structure of on-demand services and players' strategies also play a role:

the relevance of the marketing positioning of the services;

the existence of partnerships with distributors who already have a subscriber/equipment base;

the effectiveness of recommendation systems, which help increase consumption and provide a better user experience;

...

More information about these issues

Profitability conditions and the challenge facing Europe

The issue of achieving profitability with transactional services is not as critical as for subscription services. Because most transactional service costs are variable costs, proportional to consumption, these services are not expensive to create and only become so when the content is actually consumed.

Therefore, there are no real obstacles to creating new services and the costs of entry into the market are low. This explains the abundance of existing services and the great diversity of players in this segment.

The economy for SVOD services is more delicate: as well as technical and marketing costs, content acquisition costs can be regarded as fixed costs because the content is purchased at a fixed price, regardless of consumption. To that can be added costs related to development or acquisition of a recommendation tool. Subscription services therefore have significant costs even before they have started to recruit subscribers.

If the European industry cannot create some European champions of their own to compete with the US giants, many European players may disappear as the market rationalises.

Discover the perspectives,  key trends, and scenarios about the TV market for the next decade through our dedicated report and register to DigiWorld Future 2016 

DWF15 video report v3For the publication of the 16th edition of the DigiWorld Yearbook (pre-order now), IDATE is organizing a conference based on the detailed analysis of the current situations and some forecasts by IDATE experts on the major digital sectors, the discussion will deal with the great trends and challenges that will disrupt the digital markets by 2025.

Register

 

 

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27Apr/160

Connected TV: Accelerating OTT video development

BAJON_Jacques

Jacques Bajon
Director of Media & Digital Content Business Unit, IDATE DigiWorld

The development of connected TV is inextricably bound up with the widespread availability of high-speed Internet access, a shift to more and more individual viewing and the proliferation of smart devices in the home.

 

Together, these three elements are steadily revolutionising how viewers access their TV programmes, and providing them with an array of new functions and features. TV sets can be connected to the Internet in several ways. Using:
a smart or connected TV (direct connection, via Ethernet or Wi-Fi),
a connected set-top box,
a streaming box or stick,a connected game console,
or a smart Blu-ray player.

In 2015, almost three-quarters of the televisions being shipped are Smart TVs, even if their owners may not systematically take advantage of the Internet connection. At the same time, the market for streaming devices – whose main purpose is to play online videos – is progressing rapidly. Within this market that is still populated by a great many solutions and services, several trends are taking shape:
the way users access and employ connected TV services has become more simple, and shifted from Internet-centric to video-centric;
managing connectivity with users’ personal devices has become a key issue, with app systems playing an increasingly central role;
OTT services are moving to the TV and making real strides;
...

More information about main trends

Technological progress in a variety of areas is helping to bolster the market’s development, be it the growing ubiquity of broadband and superfast broadband access in the consumer market, major improvements in video optimisation and compression (HEVC), or the advent of innovative features such as casting which allows users to send video content from a personal device to the television. The main stakeholders in the connected TV ecosystem can be broken down into three categories, based on their original sector of activity: consumer electronics (CE) companies, TV market players and the Internet’s leaders.
CE industry players are working to improve their software interfaces, either through dedicated developments such as Samsung has done with Tizen, or by acquiring another company, as LG has done with WebOS. The aim is to capture the added-value in the marketplace, whether in the arena of services and/or by selling high-end devices.
Players from the TV universe are developing their OTT products, and working to bolster their position on the software side of the equation with more open and hybrid platforms. The connected TV could enable them to renew ties with consumers, and better monetise their plans. Broadcasters and pay-TV providers, especially in the United States, are therefore starting to roll out complete OTT plans which include a live component
Lastly, companies such as Google, Amazon, Facebook and Microsoft that dominate the Internet, are very knowledgeable about software, and changing consumer habits. So they are in the best position to deliver a top-notch user experience, whether in terms of smooth and intuitive interfaces, or providing recommendations based on user data. Their increasingly vertical positioning – covering everything from the content to the device – is also bolstering their potential to capture a growing portion of the video entertainment market.

In this way, many scenarios are emerging for Connected TV to 2025, and will determine which industries are likely to increase their control over this environment:

Impact_scenarios_TV_connectee_2025_IDATE_DigiWorld_OTT_VA

The size of the OTT video market will vary considerably under these scenarios, depending on how the environment evolves and so which industries prevail, and The popularity of the different devices will also evolve along the same lines.

Discover the perspectives,  key trends, and scenarios about the TV market for the next decade through our dedicated report and register to DigiWorld Future 2016 

DWF15 video report v3For the publication of the 16th edition of the DigiWorld Yearbook (pre-order now), IDATE is organizing a conference based on the detailed analysis of the current situations and some forecasts by IDATE experts on the major digital sectors, the discussion will deal with the great trends and challenges that will disrupt the digital markets by 2025.

Register

 

 

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8Mar/160

TV revenues are stronger than ever: from €366.8bn in 2015 they will hit the €413.1bn mark in 2020

LEBORGNE-Florence_NB

Florence Le Borgne
Director of Studies, IDATE DigiWorld

since the deep dip in 2009 one sole direction: upwards!

 

 

Regarding the latest update of IDATE’s half-yearly TV & video services observatory, Alexandre Jolin, Senior Consultant at IDATE, claims: “TV revenues are stronger than ever: from €366.8bn in 2015 they will hit the €413.1bn mark in 2020: still six times higher revenues than generated by video services (both physical and online). Within TV revenues, ad spending will grow at a tremendous pace until 2020 – It will increase by 14.6% – and will be relatively close behind pay-TV revenues. This is particularly notable because the European TV ad spending revenues dropped hardly in 2008, followed by a sluggish growth until 2015. In order to put in relation: Online advertising (both fixed and mobile, video and non-video altogether) worldwide revenues are skyrocketing, nevertheless they will leave behind global TV ad spending at best up from 2019. With this in mind, traditional TV still seems to have a bright outlook for this decade, both for ad spending and other related revenues.”

Key TV facts and outlook

The global TV industry’s revenue will come to €366.8 billion in 2015 and €413.1 billion in 2020.

Pay-TV revenue will grow by 11.7% between 2015 and 2020, to reach €199.0 billion in 2020.

Ad revenue will increase more rapidly (+14.6% between 2015 and 2020), to reach €178.3 billion in 2020.

Public financing/licensing fees will continue to increase significantly (+8.3% in 5 years) to reach nearly €35.9 billion in 2020.

Breakdown of TV market revenue in 2015

schema_TV_ad

Source: IDATE, State of TV & Video Services worldwide, December 2015

Regarding TV access, the number of TV households worldwide will reach 1.742 billion in 2020 (+9.1% since 2015).

Cable will the remain the chief access channel (623.8 million households in 2020) but will gradually lose ground to satellite and IPTV which will account for 33.4% and 10.3% of TV households, respectively, at the end of 2020.

Despite the development of hybrid TV solutions, terrestrial TV should continue its decline on the first TV set and drop down to number three spot by 2020, with a 20.5% share of the global market.

The development of hybrid solutions that combine live programming on broadcast networks (terrestrial and DTH) and OTT video services over the open Web is a key variable in the future development of the various TV access modes, and may well shake up current trends.

Video revenues

Video hard copy sales and rental will total €10.8 billion in 2020

This means that the global market will decrease by 40.8% compared to 2015.

Blu-ray will be the most common format and help temper plummeting hard copy sales.

On demand video revenue will reach €54.3 billion in 2020, which is 119.6% more than in 2015.

OTT video will continue to be by far the biggest earner, generating 83.9% of total revenue.

VoD will still be the dominant model on managed networks. It will generate €5.8 billion in 2020 versus €2.9 billion for subscription video on demand (S-VoD).

Breakdown of on-demand market revenue in 2015

schema_TV_ad_2

Source: IDATE, State of TV & Video Services worldwide, December 2015

Learn more about our ongoing monitoring of TV & Video Services covering 39 countries, 10 regions and world consolidated.

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26Feb/160

DigiWorld Summit 2016: The Internet of Trust

Logo-DWS2016_WEB400x150

Debate over the crucial role that trust will play in the digital economy’s future

 

The 38th annual DigiWorld Summit will run from 15 – 17 November 2016, and have as its central theme: The Internet of Trust. It will be an opportunity to engage in a meaningful international debate over digital trust issues – starting with security and privacy – which have become major sources of concern for all of the ecosystem’s stakeholders.

As the number of reported cyber-attacks worldwide is growing by close to 40% a year, we expect that upcoming stages in digital technologies’ evolution will only amplify the phenomenon. And this to such an extent that any future scenario is possible: from a continuation of the current chaos to a breakdown in trust that would lead to the construction of a new digital economy, which will no doubt differ in many respects from the one we know today.=

Are we reaching a tolerance threshold for online trust?
How can veteran digital industry players (equipment suppliers, telcos, IT companies) capitalise on the current climate?
Are verticals threatened by the situation or, on the contrary, on the winning side of trust and security issues?
Do we need a new regulatory framework to govern, or reassure, market players and consumers?

The need for a profound reassessment of security and trust issues seems inevitable: massive increases in spending on security solutions, rise in protectionist behaviour (use of ad-blockers, battle against botnets, etc.), avoidance tactics (piracy and circumvention), clarification of the terms governing access to private data and the management of digital identities and online reputation… There is no shortage of issues and threats affecting the rate of adoption of digital technologies, but which could also prove to be opportunities for all market players.

> Use and misuse of trust
Will trust be a key parameter in tomorrow’s Internet?
The privacy paradox: Usage is high, trust is low: Are we reaching a tolerance threshold for online trust?
Digital trust at the heart of customer relations? How do Internet companies and verticals gain their customers’ trust?
Can we trust digital world players? Can the Internet giants continue to be both the arbiters and targets of their users’ trust issues?
Can the digital world trust us? Focus on piracy: Can businesses trust their customers?

> Trust technologies
   A broad field of innovation for market leaders and start-ups
Innovative security solutions: biometrics, etc.: What can we expect from the next wave of innovations in the arena of cyber security and data control?
Blockchains and decentralized trust: Will today’s trusted third parties be cut out of the loop?

> Trust altering the digital value chain
Will trust be a game-changer?
Trusted third parties & digital coaches: Will we see new trusted third parties emerge (banking, post, health…)
Do we need more secure enablers? New growth enablers for telecom and IT industry leaders?
What role for telcos? Monetise data or become trusted third parties?

> Business model crash test
Will the current and future business models for trust-sensitive advertising and IoT markets be suited to the new climate?
Real time biding and programmatic ad buying: Can online advertising survive and adapt to the loss of trust?
Big Data and the Internet of Things: Will successful trust management be key to the future of IoT and monetisation initiatives?

> Regulation of trust, and trust in regulation
    How can regulation stimulate usage and innovation while also safeguarding against threats and transgressions in the digital economy?
Trust and anti-trust: what about platforms? Can and must online platforms be regulated?
Safe Harbor and Privacy Shield – the new deal: Can a balance be struck between conflicting European and US positions?
Cybersecurity and terrorism: Are the future credibility of and trust in the digital economy bound up with the fight against global threats?

A unique international forum for debate and networking

> Thematic Forums

  • Connected Things Forum
  • Fibre Networks Forum
  • TV & Video Forum
  • FinTech Forum
  • Mobile Networks Forum
  • Digital Africa Forum
  • Game Summit

> DigiWorld Week
   A full week of symposiums and partner events (13 – 21 November 2016)

> The DigiWorld Awards
    Recognising the best digital start-ups created by French entrepreneurs abroad

Key facts & figures

Europe’s trailblazing conference on the digital economy

The DigiWorld Summit is an annual event organised and hosted by IDATE experts, with the support of DigiWorld Institute members. Every year it holds ultra high-level international debates on the core issues shaping the digital economy, with the finest speakers and industry insiders.

Participants: 1,200 participants at the DigiWorld Summit and more than 5,000 at DigiWorld Week
Speakers: 120 speakers from around the world; 400 at DigiWorld Week
Partners and sponsors: over 100 partners and sponsors (businesses, public sector, media…)
Social media: 15,000 tweets (trending topics) and 2,000 live followers

Speakers in 2015 included: Jimmy WALES, Founder, Wikipedia – Peter VERHOEVEN, Managing Director EMEA, Booking.com – Alex SCHLEIFER, Head of Design, Airbnb – Eric DENOYER, CEO, Numericable-SFR – Dan JUDKINS, Head of Global Design and Development, Hasbro Inc. – Carlo d’ASARO BIONDO, President EMEA strategic relationships, Google – WEN Rui, Director of national Business Development, Youku Tudou – Sebastien SORIANO, Chairman, ARCEP – Bruno LASSERRE, Chair, French Competition Authority… > for more, go to www.digiworldsummit.com

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