PANORAMA OF THE VOD SERVICES IN THE EUROPEAN UNION Andrй LANGE, Head of Department for Information on Markets and Financing with the collaboration of Boris Chaleur, Florence Hartmann and Deirdre Kevin

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PANORAMA OF THE VOD SERVICES IN
THE EUROPEAN UNIONAndré LANGE, Head of
Department for Information on Markets and
Financingwith the collaboration of Boris
Chaleur, Florence Hartmann and Deirdre Kevin
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CHALLENGES IN MONITORING THE DEVELOPPMENT OF
ON-DEMAND AUDIOVISUAL SERVICES IN EUROPE

• Complexity of the technological possibilities
• Complexity of the business models
• Diversity of professional definitions
• Extreme fragmentation of the markets
• Extreme fluidity of the offers
• Absence sofar of national monitoring

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MODALITIES FOR ON-DEMAND SERVICES 1. PURE WEB
SOLUTIONS1.1. Online VoD services
VOD service provider
Cataloguesproviders
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PURE ONLINE VoD SERVICES IN THE EU 159 in
December 2009 165 in June 2010 (not
included adults, catch-up TV, channels on video
sharing platforms) Source OBS
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MARKET SHARE OF WEB VoD IN FRANCE IN 2009 ( of
the total transactions) Source Gfk/CNC
8,7
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30 PURE WEB VOD SERVICES CLOSED SINCE DECEMBER
2008

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SOME OF THE NEWCOMERS ON THE ONLINE VOD MARKET

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MODALITIES FOR ON-DEMAND SERVICES 1. PURE WEB
SOLUTIONS 1.2. Channels in Video Sharing
platforms
CATALOGUES PROVIDERS
UGC
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INDUSTRY ON-DEMAND SERVICES IN THE FRAMEWORK OF
VIDEO SHARING PLATFOMSNUMBER OF SERVICES Not
available

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MODALITIES FOR ON-DEMAND SERVICES 2. HYBRID
SOLUTIONS CAB-SAT TV ONLINE CATCH UP TV
TV
CATCH UP TV
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NUMBERS OF ONLINE SERVICESIN THE HYBRID CATCH UP
TV OFFERSJune 2009 - Source OBS
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MODALITIES FOR ON-DEMAND SERVICES 2. OVER THE
TOP SOLUTIONS (OTT) 2.1. iTunes Stores
iTunes Stores catalogues
Studios and networks catalogues
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NUMBER OF FILM AND TV TITLES IN iTUNES STORES
CATALOGUES (June 2010) Source OBS
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NUMBER OF NETWORKS AND STUDIOS CHANNELS ON
iTUNES STORES June 2010 Source OBS
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MODALITIES FOR ON-DEMAND SERVICES 2. OVER THE
TOP SOLUTIONS (OTT) 2.2. VideoGame consoles
XBOX360
ZUNE MARKETPLACE

PSP3
PSP VIDEOSTORE
STUDIOS
WII
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ONLINE MOVIE STORES IN OPERATION IN EUROPE -
June 2010

• Apple iTunes Store GB, DE, FR, IE
• Microsoft Zune Marketplace AT, BE, CH, DE, DK,
  ES, FR, FI, GB, IE, IT, NL, NO, SE
• Sony PlayStation Store DE, ES, FR, GB

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MODALITIES FOR ON-DEMAND SERVICES 2. OVER THE
TOP SOLUTIONS (OTT) - 2.3. Stand-alone
Set-Top-Box
23 CATCH UP TV SERVICES
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MODALITIES FOR ON-DEMAND SERVICES 2. OVER THE
TOP SOLUTIONS (OTT) - 2.4. Web-enabled devices
(Blu Ray player, Home cinema, connected TV set)

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FIRST ALLIANCES BETWEEN VOD SERVICES PROVIDERS
AND MANUFACTURERS

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CONNECTED DEVICES IN FRANCE, GERMANY AND UK
(2009-2014) Source Screen Digest
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CONNECTED TV SET SHIPMENTS IN THE WORLD -
FORECAST 2008-2012Source Display Search
January 2010
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FILM ON-LINE MARKET IN EUROPE (EUR MILLION) -
GROWTH IN 2009 89 Source Screen Digest
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NEXT GENERATION OF OVER THE TOP SOLUTIONS
DIRECT ACCESS ON THE WEB TV SERVICES ON THE TV
SCREEN
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3. ON-DEMAND SERVICES ON TV DISTRIBUTION
PLATFORMS3.1. IPTV 55 OF THE 88 IPTV OPERATORS
IN THE EU PROVIDE AT LEAST ONE ON-DEMAND SERVICE
(December 2009) Source OBS

RADIO TV CHANNELS
OWN VOD SERVICE
IPTV OPERATOR
THIRD PARTIES VOD SERVICES
CATCH-UP TV SERVICES
UGC
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NUMBER OF IPTV OPERATORS IN THE EU PROVIDING n ON
DEMAND SERVICES (Dec. 2009) Source OBS
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EXEMPLES OF MULTI-SERVICES OFFERS ON IPTV
PLATFORMS

2 OWN VOD SERVICES AND 24 CATCH UP TV SERVICES
17 VOD AND 2 CATCH UP TV SERVICES
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3.2. VOD ON DIGITAL CABLE TV PLATFORM

RADIO TV CHANNELS
OWN VOD SERVICE
CABLE OPERATOR
THIRD PARTIES VOD SERVICES
CATCH-UP TV SERVICES
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NUMBER OF ON-DEMAND SERVICES PROVIDED BY MAIN
CABLE OPERATORS IN EU June 2010 Source OBS
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3.3. PUSH ON DEMAND SERVICES BY SATELLITE
OPERATORS 6 PROPOSALS IN THE EUROPEAN UNION
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3.4. PUSH ON DEMAND SERVICES THROUGH DIGITAL
TERRESTRIAL TELEVISION
TOP UP TV 2008 23 catch up TV and 2 SVOD
services 2009 1 catch up TV services and 2 SVoD
service MEDIASET PREMIUM 2010 Premium on Demand

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3.5. 51 MOBILE PHONE OPERATORS IN EU PROVIDE TV
SERVICES BUT ONLY 21 PROVIDE ON-DEMAND SERVICES
(December 2009) - Source OBS
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ON-DEMAND SERVICES ON MOBILE INTERNETFREE VOD
TRAILERS, NEWS, FREE CATCH-UP TV, PROMO OF
PAY-VOD SERVICES,

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ON-DEMAND SERVICES ON MOBILE INTERNET FREE VOD
SUBSCRIPTION VOD OR CATCH-UP TV SERVICES THROUGH
iPHONE APPS
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ON-DEMAND SERVICES ON MOBILE INTERNET PAY VOD
SERVICES OUTSIDE OF THE APP STORE
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ON DEMAND AND NVOD REVENUES (INCLUDING SPORTS) OF
PROVIDERS IN EUROPE (2004-2008) - EUR million -
Source Screen Digest / OBS
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ON DEMAND AND NVOD REVENUES (INCLUDING SPORTS) BY
COUNTRY IN EUROPE (2004-2008) - EUR thousand
Source Screen Digest / OBS
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A MODEL OF MONITORING THE CNC OBSERVATORY OF
FILM VoD SERVICES IN FRANCE

• 8 services provide monthly data
• - Orange (avril 2006)
• Canal Play (mai 2006)
• TF1 Vision (juillet 2006)
• France Télévisions VOD (septembre 2006)
• Virgin Mega (septembre 2006)
• Arte VOD (octobre 2006)
• Univers Ciné (janvier 2008)
• Club Vidéo - SFR (janvier 2009)
• Supply  monthly lists of film catalogues
• Consumption  Breakdown according 2 criteria
• - origin of films
• - age of films

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FRANCE SUPPLY OF FILMS BY 8 VoD PROVIDERS
(2009) Source CNC
From January to December 2009 748 films
added Growth of the offer 18,2
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Hors double compte
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FRANCE ORIGIN OF FILMS IN THE CATALOGUE OF 8
VoD SUPPLIERS (2009) Source CNC
December 2009 - 2 190 French ( 23,7 ) - 1 665
US films (7,9 en un an)
January 2009
December 2009
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FRANCE BREAKDOWN OF THE TURNOVER OF 8 VoD
PROVIDERS (2009) - Source GfK / NPA /CNC

• Feature films 64,9
• Adult films 30,4
• TV programmes 4,7

Source GfK/NPA
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FRANCE MARKET SHARE OF FILMS IN THE TURNOVER OF
8 VoD PROVIDERS (2007-2009) Source GfK / NPA
/CNC

• 2009
• French films 30,9
• US films 58,6
• Others 10,5

Source GfK/NPA
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CONSUMPTION ON THE TV SET IS THE KEY OF THE
PAY-VoD MARKET

• Online market is relatively marginal
• In France 93 of the film VoD turnover is
  realised on IPTV services
• In other countries, growing interest for the VoD
  set-top box (US exemples, Maxdome, Video Futur,
  Canvas project,)
• Growing importance of the Over the top
  services
• Web-enabled TV sets alliances between TV
  manufactures and VoD providers
• Hypothesis of an European equivalent of Google TV
  ?
• Regulatory question monitoring the catalogues
  of services or monitoring the access to the
  distribution platforms for services promoting
  European works ?

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NO AUTOMATIC LONG TAIL EFFECT IN FAVOUR OF THE
EUROPEAN FILMS

• The Long Tail theory is reviewed by academic
  researchers
• Some pofessionnals argue that it was valid only
  in the first years of the Internet
• The French case does not demonstrate a proportion
  between offer and consumption of European/others
  films
• Almost no promotion policy by the operators sofar

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TRANSPARENCY ISSUES FOR THE MARKET ANALYSIS

• Identification of the services and of the
  providers
• Catalogue analysis
• Potential audience of services number of
  subscribers to distribution platform
• Households expenditures
• Companies revenues for on-demand services
• Analysis of revenues flows between distributors,
  providers of services and content providers
• Success of individual titles
• gt Report Attentional on the implementation of
  article 3 and 4 of the TWSF Directive includes
  analysis on the difficulties of monitoring the
  VoD market
• gt Need for an European regulation ?

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THANK YOU !

• http//www.obs.coe.int