A report from the European Audiovisual Observatory focuses on the evolution of the SVoD, TVoD abd AVoD markets in the European Union (EU28) and their impact on the traditional audiovisual markets.
The paid VoD market (SVoD and TVoD) exploded in the past 10 years, with revenues increasing from €388.8 million in 2010 to €11.6 billion in 2020, mainly driven by an astonishing growth in SVoD revenues, from €12 million in 2010 to €9.7 billion in 2020.
The growth in SVoD revenues was driven by multiple service launches over the past 10 years and rapid consumer adoption in Europe, with OTT SVoD subscriptions passing from 300,000 subscriptions in 2010 to over 140 million in 2020.
On the traditional audiovisual sector, European TV players dominated their national market. With the shift to direct-to-consumer SVoD streaming services, and the entry of global tech, US studios and entertainment players into EU national markets, the old market equilibrium is changing and new entrants dominate the EU SVoD market.
The growth on the TVoD market was driven by an steady increase in retail and rental revenues, from €377 million in 2010 to €1.87 billion in 2020, with retail revenues soon to surpass rental revenues in the coming years as digital purchases of recent theatrical films becoming more popular with EU consumers.
While the AVoD.catch-up market is still in its infancy in Europe and only represents a fraction of traditional TV advertising revenues for most commercial TV players, the sector is set to rapidly increase in revenues as new AVoD players enter the EU market and advertisers shift their advertising expenses online to reach consumers who are increasingly spending viewing time on advertising-financed services.
While paid VoD revenues are still a small fraction of total audiovisual revenues in the EU (7 per cent of €114.5 billion in 2019), this share is set to increase with profound changes happening on the audiovisual sector. The report explores these changes on the audiovisual market and their impact on the audiovisual sector in the EU