Sunday, March 3, 2024

SVOD Development Pushed by US Streamers as European PSBs Lose Floor

European SVOD subscriptions are largely concentrated within the prime three streaming providers, in line with new analysis by the European Audiovisual Observatory.

The report, ‘High gamers within the European audiovisual trade – possession and focus’, discovered that on the finish of 2021, Netflix, Amazon and Disney+ accounted for 71 % of SVOD subscriptions. This makes SVOD essentially the most concentrated AV market section in Europe, although pay-TV additionally witnessed robust focus, with 76 % of subs amassed by the highest 20 operators.

The analysis additionally revealed extremely concentrated revenues among the many prime 20 corporations, which represented 71 % of the whole revenues. The highest 100 AV companies noticed mixed income development of 17 % between 2016 and 2021, rising twice as quick as the general market.

That development was pushed by SVOD providers, in line with the report, which cited the “extremely dynamic growth” of SVOD revenues. Netflix, Amazon, DAZN and Apple accounted for 44 % of development among the many prime 100 corporations, whereas conventional broadcasters additionally elevated their cumulative revenues by 10 % over the six-year interval.

A European battleground

In the meantime the figures revealed the rise of US gamers in Europe, as US-based corporations elevated their weighting within the prime 100 by 3 % since 2016. The European Audiovisual Observatory credited not solely the pure SVOD gamers (resembling Netflix and Amazon) however moreover the streaming providers of US broadcasters, together with Paramount+ and Disney+.

Conversely the native public service broadcasters (PSBs) fell beneath the common development price of the highest 100 corporations, their weighting diminishing by 3 % since 2016. In consequence, the market share of the PSBs fell to 30 % in 2021.

“US gamers have a tendency to start out prioritising enlargement via direct investments by launching SVOD platforms, buying European property and producing content material domestically versus conventional oblique investments,” famous the report.

And because the SVOD corporations transfer into promoting, the competitors for content material intensifies, argues Paolo Pescatore, Know-how, Media & Telecoms Analyst at PP Foresight. “This takes Netflix in direct competitors with free-to-air broadcasters world wide,” he says. “This may entice curiosity from leisure exhibits like Strictly, The Masked Singer et al to all contemplate making strikes in the direction of distribution by way of the streamers.”

“Finally the shift in the direction of streaming will negatively influence linear TV networks and free-to-air broadcasters who’re closely reliant on promoting as the principle income supply,” provides Pescatore. “This might show to be the ultimate nail within the coffin for these gamers.”

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