Although traditional TV providers such as KPN and Ziggo are increasingly generating revenue from their TV services, their combined market share is declining. This is evident from Telecompaper’s new Dutch TV-Video Market report.
Since Netflix launched in the Netherlands in 2013, internet companies have been growing their share of consumer TV budgets. The over-the-top providers already account for 16 percent of consumer spending on TV and video services, up from 11 percent a year ago.
Netflix alone takes 12 percent of consumer revenues for TV and video. Only Ziggo and KPN are bigger in the total market. Together, the three companies account for 85 percent of TV and video revenues. The remainder is divided among around 25 providers, including Delta, Film1, Eurosport Player, Pathe Thuis, Tele2, Videoland and T-Mobile.
The market revenues include premium channels available on a subscription basis. These account for around 6 percent of the TV providers’ revenues. Fox Sports is the biggest in terms of revenue, helped by its recent growth after agreeing new distribution deals. Ziggo Sport Totaal has also increased sales, supported by the popularity of its Formula 1 coverage.
The Dutch mainly rely on subscription services for TV and video, paying monthly or annual fees. Transactional video on demand (TVOD) also is available on the market and accounts for around 2 percent of total revenues. Pathe Thuis and iTunes are among the bigger providers, while KPN and Ziggo also offer one-off films and series to order over the set-top box.