ibc_ibc 31/08/2014 13:17 Page 1
EUROMEDIA
SPECIAL
Euro online SVoD will climb to 20%
he number of European homes
paying a monthly subscription
to receive SVoD [subscription
video on demand]
packages will climb from 1.78
million in 2010 (0.6% of TV
households) to 17.99m by end-2014
(6.4%) and onto 59.41m in 2020
(20.7%), according to a new report
from Digital TV Research. The
European Online TV & Video report
forecasts that 6.8% of Eastern
European TV households (11
countries) will subscribe to an
SVoD package by 2020, compared
with 29.7% in Western Europe (15
countries).
Online television and SVoD revenues will
climb from $116m in 2010 to $1.633 billion
in 2014 and onto $5.502 billion in 2020.
The UK will remain the SVoD revenue
T
Value-adds
differentiate online
video platforms
In order to remain
competitive, vendors must
create tighter technology
partnerships to provide
customers with value-added
services, finds consultancy
firm Frost & Sullivan.
The global online video
platform (OVP) market is set to
double by 2019 as video
rapidly becomes a critical
means of stakeholder
communication and
collaboration for enterprises
globally. As a result of content
proliferation and the bring your
own device (BYOD) trend, OVPs
are becoming an essential
fixture as media and
entertainment (M&E) companies
are urged to economically
deliver video to fast-growing,
fragmented video-enabled
market leader, although Germany will be
close behind by 2020.
European online TV and video revenues
(over fixed broadband networks) will reach
$12.872 billion in 2020; up from only $923
million in 2010 and the $4.804 billion
expected in 2014.
consumer devices.
Fresh analysis from Frost &
Sullivan, Analysis of the Global
Online Video Platforms Market,
finds that the market earned a
revenue of $369.4m in 2013
and is estimated to reach
$800.2m by 2019.
“As more niche content
finds its way online and intense
competition causes customers
to differentiate on content
selection, time to market, and
quality of experience, OVPs will
be critical to ensure business
success for M&E firms,” advised
Frost & Sullivan digital media
industry analyst Anisha Vinny.
“The inability of M&E
organisations to handle the
complexity of publishing video
online is particularly fuelling
the demand for OVPs that can
manage and monetise video
assets.”
According to Frost &
Sullivan, where budgets are
The UK will remain the dominant territory
for online TV and video revenues. However, its
share of regional revenues will drop from 30%
in 2010 to 20% in 2020. Italy will climb
from only $66m in 2010 to $1.237 billion
by 2020. Russia will grow from $20m in
2010 to $874m by 2020.
Online TV and video advertising
revenues are expected to be $2.305 billion
in 2014, up from $663m in 2010. Rapid
advertising expenditure growth will
continue, to reach a European total of
$5.117 billion in 2020. The UK will remain
the market leader, with $1.175 billion in
2020.
Online TV and video rental/pay-perview revenues will still expand rapidly,
climbing from $55m in 2010 to $858m in
2020. Download-to-own revenues are forecast
to be $1.395 billion in 2020, up from $89m in
2010.
constrained and in regions
where the economy has yet to
pick up, OVP deployments are
slower, which in turn makes
home-grown solutions or
YouTube popular substitutes.
Security concerns around
handling branded Intellectual
Property (IP) in the cloud and
the lack of enterprise-wide
video strategies also present
challenges.
In addition, there is also
confusion around what
constitutes an OVP owing to
the number of features,
including transcoding, DRM,
analytics and multi-platform
delivery. From a customer’s
perspective, comparing
various product features,
pricing and deployment
options is complicated. This
lack of market awareness
around exact capabilities of
an OVP makes consumer
education and the right
messaging critical.
“Investing in tighter
technology partnerships to
provide customers with valueadded services and critically
analysing product portfolios to
make partner versus acquire
decisions will be key to
maintaining a competitive edge
in this market,” noted Vinny.
“Even if they do not cultivate a
strong local presence, OVP
vendors must at least invest in
building relationships with
reseller channels in Latin
America, the Middle East and
Asia-Pacific to widen their
market scope.”
As a result, offering
analytics, metrics and
personalisation that enable
companies to derive value from
their video assets will help OVP
vendors differentiate
themselves in the evolving
market, concludes Frost &
Sullivan.