European VOD revenues increase 30-fold over last ten years | Media Analysis | Business | News | Rapid TV News
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Just days after revealing the strength of the subscription video-on-demand market in the region as regards the vast array of services on offer, the European Audiovisual Observatory has revealed the financial robustness of the SVOD arena.
Euro VOD Market 10Feb2021
The report focuses on the evolution of the SVOD, transactional video-on-demand (TVOD) and advertising-financed and broadcaster video-on-demand markets (AVOD/BVOD) markets in the European Union (EU28) and their impact on the traditional audiovisual markets.

The report revealed that for the period 2010 – 2020, that is a European Union sill including the UK, the paid VOD markets saw SVOD and TVOD revenues increasing from €388.8 million in 2010 to €11.6 billion in 2020. The SVOD arena was the key driver for this growth, “exploding”, said the European Audiovisual Observatory, from €12 million in 2010 to €9.7 billion in 2020.

The growth in SVOD revenues was shown to be driven by multiple service launches over the past 10 years and rapid consumer adoption in Europe, with OTT SVOD subscriptions passing from just 300,000 subscriptions in 2010 to over 140 million in 2020. In the traditional audiovisual sector, the European Audiovisual Observatory noted that European TV players dominated their national markets. Yet it also found that 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 was changing and new entrants were beginning to dominate the EU SVOD market.

At the same time TVOD market revenues rocketed from €377 million in 2010 to €1.87 billion in 2020. TVOD growth was driven by a 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.

Other key findings from the Trends In The VOD market In The EU 28 reportTrends In The VOD market In The EU 28 report included the discovery that for most commercial TV players, the sector was 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. In addition, while paid VOD revenues were still a small fraction of total audiovisual revenues in the EU (7% of a total of €114.5 billion in 2019), this share is set to increase with profound changes happening on the audiovisual sector.