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.