The turnover generated by video-on-demand (VOD) services on the internet is expected to rise by 18% to €945 million in Germany in 2017.
Last year, the market volume amounted to €800 million. The revenues with series, movies, documentaries, concerts and other on-demand content will, thus, grow for the seventh consecutive year, reports German industry association Bitkom with reference to figures compiled by IHS Markit.
The largest share is expected to be generated by fee-based video offerings with a combined turnover volume of €511 million in 2017. These business models comprise subscription-VOD, sale or rental of on-demand content, offered by, for example, Amazon Video, Apple iTunes, Google Play, maxdome, Netflix and Sky Online.
For the first time, subscription models (€275 million) are expected to generate higher revenues than transactional-VOD (€236 million) in 2017.
Advertising-based VOD services offered free-of-charge to consumers will reach a combined turnover of €434 million this year, according to the research company. Players in this market segment include, for example, YouTube, Facebook, Netzkino and T-Online as well as the websites of commercial TV broadcasters.
Three quarters (77%) of German internet users from 14 years of age watch movies, TV shows and other videos via internet streaming, according to a survey.
