TURNING DIGITAL

The 17^th ITMedia Consulting Annual Report

From Television to Televisions

The TV market revenues in Western Europe (EU15+CH+N) in 2018 finally bypassed the threshold of € 100 billion, totalling € 100.3 billion; compared to the € 98.3 billion in 2017, there was a 2% increase year on year. Even with an average inflation rate of 1.6% in 2018, there was a limited positive growth also in real terms.

This result comes from a context of strong differentiations on country basis, reflecting also the persistent gap across the various economies. However, given a downturn in demand for the traditional entertainment services, a common trend in all the WE countries is the broadcasters’ move to the online sector, increasing content supply to serve a growing demand for non-linear services on many ways and different devices.

Pay-TV market continues to grow. While the last few years have witnessed a shift in the viewing preferences towards accessing content on-demand and on multiscreen mode, as a result, pay-TV still represents the largest part of TV income. In 2018 reached € 48.3 billion of revenues, +4.3% compared to the € 46.3 billion revenue in 2017. TV advertising reached € 30.6 billion, nearly stable compared to the 2017, with a slight increase of 0.4%. Again, even if the mainstream TV adv is still losing shares, online adv showed higher growth that compensate the losses of the former sector. 

Market trends:

Consolidation and internationalization could be the key to European broadcaster success in the face of competition from global OTT players. A consolidation among regional broadcasters has been a key theme with the goal of making for an effective competition against global giants that are going to dominate not only online video streaming but also European pay-TV,

Another of the big challenges is the cooperation between broadcasters and global VOD players. On one hand companies like Netflix and Amazon are now much more eager to be involved in distributing shows after they have been broadcast and paying more upfront costs in order to be part of the project. On the other hand, broadcasters who are fine to partner with these new platforms are hesitant to give up control.

Most operators in Europe are feeling a little bit nervous about the capital spending and uncertain about the business models, especially in the telco industry. Video is expected to be the “killer app” or at least the “first killer app”. Today 60% of mobile consumption is video and it will grow fivefold in the next four or five years. That is what is driving mobile broadband and fiber deployment. At the same time, people are watching more television and are radically changing viewing habits.

In this vision, 5G convergence with media and entertainment is strongly expected. More specifically, fueled by last year’s burst of M&A activity and the ongoing rise of mobile video, the sector is central to early industry business and use cases flowing from the first phase of the 5G standards.

For further informations read the Table of contents

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The 13^th edition of ITMedia Consulting's Annual Report

• Following a slow and long recovery from the 2008 economic breakdown, the 2014 TV market shows encouraging signs of growth.

• TV advertising has increased more than any other segment, with pay Tv showing a positive trend after decreasing in 2013, as broadband tv and VOD services are becoming more popular.
  

• A strong ongoing process of concentration in telecommunications and pay tv is focused on the control of premium content in order to attract more subscribers and acquire a competitive advantage on competitors through bundling and 4-play offers.

• Netflix is continuing its international expansion and is now launching its challenge to European broadcasters.

  You can find these and more on the main trends in the audivisual

industry in the 13^th ITMedia Consulting Annual Report 'Turning Digital'.

The definitive report on the TV market in Europe. 

       For further information or to purchase a copy please click here or Questo indirizzo email è protetto dagli spambots. È necessario abilitare JavaScript per vederlo.

• Following a slow expansion in the economy during 2014, many European countries have continued on the road to recover also in 2015. Within this framework, the European TV market has performed unevenly, due to the deep disparities between the national markets in Europe.
• Advertising revenues represent the leading force in the TV market and are continuing the positive growth of the last two years.
• Instead, while still representing the largest slice of the market revenues, pay TV fails to recover, due to the ever increasing competition from online players and their aggressive price policies.

• In this context, the broadcasters are more consistenly entering the Internet world and developing new ways of supplying their content - as with the skinny bundles - to deal with the threat coming from OTT.
  

• Online advertising has become an important source of revenues in the advertising mix. Even the most relevant in some of the biggest countries.

 This and a lot more in the 14th Annual Report by ITMedia Consulting.    In 90 pages with data, tables and charts, the TV market value in Western Europe is analysed as a whole and also divided by revenue sources, audience share, advertising media mix, platforms distribution and multichannel sector. Part two presents thematic focuses on the main and fastest-growing trends.

See the Table of contents

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The XII edition of ITMedia Consulting's Annual Report

16 September 2014

Table of contents

• Following a slow expansion of economic activity during 2013, however, much of Europe still struggling to recover from the impact of the 2008 financial crisis. Within this framework, the TV market performed unevenly across countries, finally managing to grow by a humble +0.4%.
• All around Western Europe, advertising spending has been hit by the economic slowdown. Also due to the absence of big TV events, Western European markets saw advertising revenues decline by 1.6% in 2013. While still representing the largest slice of the market revenues, pay TV kept its slowing pace, due to increasing competition from online players, aggressive discounting and cheaper double- and triple-play prices. In 2013 pay TV revenues grew by 1.5% compared to 2012.
• Current market trends are fundamentally changing the industry. The growth of traditional revenue streams is declining as new revenue models emerge. Internet content has entered the traditional TV screen which at the same time lost its role as unique possibility to consume audiovisual content at home. Attention is no longer focused on one screen only. Consumers demand full control over media experiences and unrestricted access anywhere, any time and on any device

• The response of many to date has been to launch video over IP services that have been defensive or ‘me too’ plays,with only limited integration or ability to exploit synergies with existing video delivery platforms. But future success requires much more than integrating the traditional content supply chain into various digital channels. To go further, traditional providers must develop new –and very different –digital capabilities

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