• Subscribe
  • Advertise
    • Media Info
    • Terms & Conditions for Advertisers
    • Mechanical Data

Broadband TV News

Independent. Since 2003

  • Home
  • News Line
    • Central & East Europe
    • People
  • TV
    • On Demand/VOD
    • IPTV
    • Cable
    • Satellite
    • Terrestrial
    • Distribution
  • Business
  • Tech
  • Columns
    • Chris Dziadul
    • Julian Clover
    • Robert Briel
  • Events
    • Events Diary
    • BTN Events
    • Events Coverage
    • Submit the details of your event
  • Features
  • Resources
    • White Papers

Interest in premium subscription content rises in Germany

March 3, 2020 22.33 Europe/London By Jörn Krieger

2019 was a defining year for the German TV and video market, with mass market resistance to premium digital video finally falling away and paving the way for this month’s launch of Disney+.

As the German market undergoes reinvention, newly released figures from Futuresource Consulting show total spend on video entertainment will reach nearly €10 billion in 2020.

“2019 was a year of structural change,” said David Sidebottom, Principal Analyst at Futuresource Consulting. “With Disney’s acquisition of Fox, and private equity group KKR’s acquisition of both Tele München and leading independent Universum Film, there’s an increased industry focus on producing content for a wider array of platforms. This is helping to drive the shift to digital consumption, pushed along by the German launch of Apple TV+ in November 2019, closely followed by Joyn Plus+. Factor in Netflix’s continued ascendance as it closes the gap on Amazon Prime Video and we’re going to see a groundswell of consumer engagement throughout 2020.”

Recent consumer research carried out by Futuresource suggests that the launch of Disney+ in Germany won’t have as much market impact as it did in the USA, but the firm’s forecasts show it will still become a leading player behind Netflix and Amazon Prime Video in a relatively short space of time. Growth is expected to be boosted by telco and pay-TV bundling and distribution, with leading pay-TV operators and telcos likely to integrate the service onto their platforms. In addition, churn will be controlled by Disney’s extensive and popular back catalogue of movie content, which is set to remain part of their services indefinitely once introduced.

“German consumers have generally lagged behind their UK counterparts by two years in terms of premium digital content consumption,” said Sidebottom. “However, that’s beginning to change. SVOD and transactional digital video are both performing well. The strong catch-up TV culture also provides a bedrock for future paid-for premium digital video growth. With the raft of new services and the continued growth of Netflix, we’re expecting to see SVOD uptake increase from less than 1.5 services per SVOD household in 2018, up to more than two in 2022. Combined with robust pay-TV subscription performance and growth in music streaming subscription services such as Spotify, we’re seeing an increased appetite for premium subscription content.”

Consumer spend on SVOD exceeded €1 billion in 2019, with Futuresource expecting total spend to reach €2.5 billion by 2023. Pay-TV hit €6 million in 2019, largely due to the increased ARPU, up by €1.1 billion from 2014.

“Market movements have ushered in a new digital era for Germany,” said Sidebottom. “The full value of service launches will be felt across 2020 and beyond, with the TV and video market culminating in a value of almost €11 billion in 2023.”

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)

Related

Filed Under: Finance, Newsline, Research Tagged With: Amazon Prime Video, Apple TV, David Sidebottom, Disney, FOX, Futuresource Consulting, Joyn Plus+, KKR, Netflix, Tele München, Universum Film Edited: 5 March 2020 12:52

About Jörn Krieger

Jörn reports on the latest developments in Germany, Austria and Switzerland. Since 1992, he has been working as a freelance journalist, specialised in digital media, broadcast technology, convergence and new markets. He also takes up University lectureships, writes articles in specialist publications, and produces radio reports. Jörn is also a moderator of panel discussions at industry events such as ANGA COM, Medientage München and IFA Berlin.

Latest News

  • TVN Warner Bros. Discovery scores record Facebook and Instagram figures
  • Lithuania awards 5G licences
  • Turkey outlines satellite plans
  • New channel for Poland’s TVP
  • Türk Telekom partners with Korea Telecom

Watch Video

Xperi on using AI to identify your audience – ANGA COM Roundup Video

Patrick Byrden, Xperi's VP of Business Development & Strategy, tells Julian Clover how the company is using AI to detect who is watching the TV, and providing them with more relevant content. … [Watch Now ...]

24i on app development and viewer recommendations – ANGA COM Roundup Video

Julian Clover speaks to 24i's Sales Director Operator Solutions, Lennart Broers, about how apps are becoming more important to pay-TV operators, and the recent acquisition of recommendations company The Filter. … [Watch Now ...]

Free Ebook

eBook: The Full Guide to IP Monitoring

IP is the future of your facility, if not already your everyday reality. It enables incredible agility and cost savings, but also introduces a new set of challenges. Read The Full Guide to IP Monitoring to learn about the best practices for IP monitoring in live production, playout and OTT and the methods to help you to reduce complexity in these workflows. … [Download the eBook...]

Broadband TV News

  • Subscribe
  • About us
  • Contacts
  • Logos & Pictures
  • Privacy Policy
  • Terms and Conditions

Advertising

  • Media Info
  • Terms & Conditions
  • Mechanical Data
  • Video Services

News

  • Latest
  • Central & East Europe
  • TV
  • Tech
  • Streaming
  • Cable
  • Satellite
  • Terrestrial
  • IPTV
  • Business
  • People

Events

  • Events Diary
  • BTN Events
  • Submit the details of your event
  • Media Meet & Greet

Broadband TV News

PO Box 499
Cambridge
United Kingdom
CB1 0AH
news@broadbandtvnews.com

Connect with Us

 

Copyright © 2022 Broadband TV News LLP · Log in

 

Loading Comments...