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German SVOD market to double by 2023; sport’s increasing role
Monday, June 11, 2018

Revenue from subscription video on demand (SVOD) services now makes up 74% of the 1.1 billion euro video on demand (VOD) market in Germany, with the VOD market expected to more than double to 2.5 billion euros by 2023, a CAGR of some 14.5%. SVOD’s share is expected to rise to 80%, according to a new report.

A report from Goldmedia (Pay VOD in Germany – 2018-2023 Forecast) shows transactional VOD (TVOD) and electronic sell through (EST) making up 12% and 14% respectively of the current market.

Nearly one-in-five German households subscribe to at least one of the 30 paid VOD service that currently operate in Germany, including the market-leading Amazon Prime Video Service (primarily TVOD and EST via its Prime service) and Netflix (SVOD).

Other services impacting the market significantly include Sky, ProSiebenSat.1 Group subsidiary Maxdome, Apple’s iTunes and Google’s Playstore.

Goldmedia notes that sports streaming services DAZN and Eurosport also have seen a steady uptick in subscribers.

As in other parts of the world, SVOD players in Germany are focusing on original content to drive subscription gains. TVOD and EST services, meanwhile, have benefited from shortening release windows on feature films that make them available within months of their cinematic release.

The increasing availability of content on all devices and increases in the availability of broadband also have helped drive growth, making viewing more convenient and improving the Quality of Experience. As wireless networks – notably 5G become available in coming years, rural areas also will have ubiquitous access to high-speed Internet, driving growth even more. Gold anticipates near 100% penetration in German households of SVOD, TVOD and EST services by 2019.

As I’ve been saying for the past several quarters, the sports segment will be a catalyst as more premium contests are made available online.

Amazon’s deal for a share of English Premier League games are a good example, as is Discovery Communication’s 12-year, $2 billion deal last week for global rights to stream PGA Tour content – including the top tournaments – outside the United States.

Within the next 24-36 months expect a surge of similar deals as entities look to take part in the sports-rights land grab.

Stay tuned.

Jim O’Neill is Principal Analyst at Ooyala. You can follow him on Twitter @JimONeillMedia and on LinkedIn

Jim O'Neill

An award-winning industry expert and futurist who specializes in the convergence of traditional TV and the Internet. My focus includes pay TV, Cloud TV, OTT, multiplatform media delivery, the ecosystem that surrounds it and consumer trends. A frequent speaker at CES, NAB, Digital Hollywood, Park’s Associates Connections events, Streaming Media and Digital Entertainment World, among others. I'm the Editor of Videomind, which in the past year has won awards from Editor & Publisher and Digiday. I'm also the Principal Analyst at Ooyala. I'm based in Michigan. I formerly was an analyst at Parks Associates and editor of FierceOnlineVideo and FierceIPTV. 

You can follow on Twitter @JimONeillMedia and on Linkedin