Report: UK is Europe’s leading BVoD market

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A study using Ampere Analysis’s most recent AVoD revenue data has revealed that European broadcasters are no longer playing catch-up when it comes to first run VoD content.

Broadcaster VoD (BVoD) audiences tend to be younger and more affluent than those who watch linear television, which has contributed to an increase in digital-only commissions. Investment in online services is essential to ensure that commercially funded groups can offset the declines in broadcast revenue Ampere expects as a result of the ongoing online viewing transition.

Linear TV advertising takes a hit

Over the last year, commercial broadcasting revenue has been in decline across major Western European markets – even before the first impact of Covid-19 on the ad market was felt – while digital ad funded content revenue has grown.

Broadcasters are seeing a growing share of their revenue from digital platforms. However, Ampere does not expect ad funded online video revenue to offset the systematic decline in linear advertising revenue in the near term.

BVoD users are young and affluent

Across European markets, BVoD users are generally younger and more affluent than those of linear television. The report by Ampere reveals how the European BVoD services are evolving to match the demands from their younger audiences who have been at the forefront of viewers’ migration from linear TV. For example:

  • German service Joyn, a joint venture between ProSiebenSat.1 and Discovery, has commissioned 20 original productions since launch, with shows such as the upcoming coming-of-age thriller Catacombs targeting a younger audience. Half of its unscripted originals feature YouTubers or social media influencers, with the service developing three new Reality/Docu-Reality shows during lockdown.
  • 30 per cent of France Télévisions’ upcoming shows are destined for VoD, with high-profile commissions for digital platform France.tv including Louis XXVIII, a  sci-fi drama set in an alternate universe in which the French Revolution never happened, following a hapless 16-year-old male protagonist who is unexpectedly crowned king.

The UK is Europe’s leading BVoD market

The report reveals that the UK is Europe’s leading BVoD market, although the most popular service is BBC iPlayer which is ad-free. ITV Hub, All4 and My5 are the leading ad supported platforms in the local BVoD market with a heavy focus on catch-up, although Channel 4’s platform All4 continues to promote a deep catalogue of boxsets.

Léa Cunat, Senior Analyst at Ampere Analysis, commented: “BVoD platforms were initially designed for TV catch-up viewing, but in recent years broadcasters have been investing in technical enhancements and original content to beef up their services to attract a young demographic. Although a degree of uncertainty remains regarding return to business and advertisers’ confidence, Ampere’s outlook for BVoD revenue growth is positive. We anticipate that the shift to digital marketing will be accelerated if the behaviours consumers have adopted during lockdown persist following the reopening of economies.”


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