Video on demand and catch-up TV in Europe

A report edited by the European Audiovisual Observatory
and the
Direction du développement des médias (DDM)
with the collaboration of NPA Conseil

400 pages - Strasbourg, October 2009

Print edition: 329 EUR
ISBN 978-92-871-6736-1

Electronic edition (PDF file): 445 EUR
delivered within 2 working days
ISBN 978-92-871-6737-8

Both editions: 470 EUR
ISBN 978-92-871-6738-5

Also available in French and German

Subject: On-demand services, the situation by mid 2009

Audiovisual on-demand services have mushroomed in Europe: More than 650 on-demand services were operational in early 2009. The landscape of the services has become very fragmented and evolves rapidly. This report offers a complete and up-to-date overview of the different types of on-demand audiovisual services.

Target group: Professionals of the audiovisual sector

In the professional audiovisual field, the discussion of on-demand audiovisual services has, because of its complex nature, often been limited to a small number of experts. Most professionals still feel excluded from a subject often perceived as almost hermetically sealed off from them. The objective of this study is to provide to the big majority of non-specialised audiovisual professionals a structured summary.

Readers' benefits: Understanding markets

The report delivers a comprehensive overview on all aspects of on-demand services: the technical dimension, the various distribution networks (Internet, cable, DSL Networks, FTTH, satellite, TNT, mobile telephones), the business models of the various market players as well as the place of the different services within the overall strategy of those players, the challenge of audience measurement and the context of the European audiovisual policy.

Value added: An overall picture from primary sources

The study is based on extensive documentary work aimed at systematically identifying the primary source of information. It makes it available by means of precise references, as well as on an initial survey of the on-demand audiovisual services operational in Europe and on regular contacts with the professionals working in this field. This report puts together all this information in order to produce a complete and precise, if not exhaustive, overall picture.

Focus Europe

The study aims to describe the development of audiovisual services in Europe. However, owing to the international nature of the strategy of some players, it appeared necessary to extend the discussion to the situation in the United States and even Japan.

Trends and findings

- Markets for on-demand services are very fragmented
- Measuring success becomes a major challenge
- On-demand services to mobile phones are emerging
- VOD on TV becomes a new challenge
- Catch-up television rapidly establishing itself
- Paid VOD services take off rather slowly
- Battles won in the fight against piracy but piracy remains an issue
- Profitability of free offers financed by advertising is uncertain
- Video-sharing sites approach traditional professional players

Definitions and scope of the study (Chapter 1.1. of the report)

First of all, we believe it is advisable to clarify a number of problems with regard to definitions as the same terms may cover different situations depending on whether they are employed in a technical or legal context or in everyday speech.

1.1.1. The technical definition proposed by the ITU.
The technical definition in English recommended by the ITU in 2004 for the transmission of (VOD) is as follows: "Program transmission method whereby the program starts playing after a certain amount of data has been buffered while receiving subsequent data in the background, where the program is completely created by the content provider." ...

Content list

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1.1.1. The technical definition proposed by the ITU
1.1.2. The legal definition provided by the Audiovisual Media Services Directive
1.1.3. Common definitions
1.1.4. The scope of this study: video on demand, catch-up TV and video sharing services

1.2.1. On-demand services via the internet

1.2.1.1. Downloading and streaming
1.2.1.2. The range of multimedia players
1.2.1.3. Territorial limitation
1.2.1.4. The computer as the main reception device
1.2.1.5. Peer-to-peer architectures

1.2.2. On-demand audiovisual services on DSL networks
1.2.3. On-demand audiovisual services on digital cable networks
1.2.4. On-demand audiovisual services on fibre optic cable to the home (FTTH)
1.2.5. On-demand audiovisual services via digital terrestrial television and satellite
1.2.6. Hybrid services
1.2.7. On-demand audiovisual services to mobile telephones

1.2.7.1. Downloading programmes in compatible formats via an internet-connected PC
1.2.7.2. Mobile internet connection and access via streaming
1.2.7.3. Direct downloads
1.2.7.4. The 4G perspective: LTE technology

1.2.8. Personal mobile television (PMT) in the DVB-H mode is not adapted to on-demand audiovisual services
1.2.9. Services that provide help to make recordings
1.2.10. The accessibility of on-demand services on a television set

1.2.10.1. The aim invoved with regard to access to a television set
1.2.10.2. Media centre PC, games consoles and dedicated set-top boxes
1.2.10.3. Side-loading systems
1.2.10.4. Direct connection from a TV to the internet
1.2.10.5. Connection via DVDplayers, Blu-ray players and home theatre systems
1.2.10.6. A promising market

1.2.11. The HbbTV initiative

1.3.1. Broadband networks
1.3.2. The rollout of fibre optic networks
1.3.3. Forecasts of the development of online video

1.3.3.1. The Cisco global internet traffic forecasts
1.3.3.2. Forecasts concerning the online VOD market

1.3.4. Digital television distribution networks

1.3.4.1. Cable
1.3.4.2. IPTV
1.3.4.3. Satellite services
1.3.4.4. Digital terrestrial television
1.3.4.5. On-demand services to mobile telephones
1.3.4.6. Conclusion: cable, the most suitable VOD carrier?

1.4.1. Operating costs
1.4.2. Cost structure
1.4.3. Cost control models

1.5.1. The forms of piracy on the internet
1.5.2. Statistical observations on piracy

1.5.2.1. Questionnaire surveys
1.5.2.2. The electronic monitoring of peer-to-peer networks and video sharing sites

1.5.3. Assessment of the impact of piracy

1.5.3.1. Assessment of the economic costs of piracy
1.5.3.2. Academic studies
1.5.3.3. Drop in cinema attendances and video market crisis

1.5.4. Legal offers of on-demand audiovisual services as a response to piracy
1.5.5. Revising the release windows in response to piracy

1.5.5.1. The new French provisions governing release windows
1.5.5.2. The discussions underway in other European countries

2.1.1. The adoption of the Audiovisual Media Services Directive
2.1.2. The drawing up of a European policy to promote creative content online

2.1.2.1. Encouraging rights holders to foster the distribution of content
2.1.2.2. Multi-territory licences
a. Incorporating online content services into a common market governed by free circulation
b. The Commission's proposals
c. Mixed reactions
d. The consumer and industry Roundtable on opportunities and barriers to online retailing and the European Single Market
e. The problem of classification

2.1.3. Developing rules for the transparency and interoperability of the various digital rights management systems
2.1.4. Guaranteeing proper protection for copyrighted works

2.2.1. The MEDIA 2007 programme: extension of EU support to include online distribution and the establishment of professional digital platforms
a. Preservation and promotion of cultural diversity
b. Increasing the circulation of works
c. Strengthening competitiveness
2.2.2. The European educational website project proposed by the European Parliament
2.2.3. Eurimages
2.2.4. National initiatives to promote VOD
2.2.5. The proposals of the Think Tank on European Film and Film Policy

3.1.1. Problems of legal definition

3.1.1.1. The concept of an audiovisual media service provider
3.1.1.2. Exclusion of user generated content services
3.1.1.3. The definition of audiovisual programmes
3.1.1.4. The term "principal purpose"

3.1.2. Principles adopted for the inclusion of services in this edition

3.1.2.1. Types of service selected
3.1.2.2. Distinctions between alternative versions of a offering under the same brand
3.1.2.3. The distinction between a service and a catalogue included in a service
3.1.2.4. Counting transfrontier services

3.1.3. Identifying the services

3.2.1. Breakdown of VOD services according to distribution network
3.2.2. The different types of player that offer VOD services

3.2.2.1. Identification of providers
3.2.2.2. Distributors of VOD services

4.1.1. Apple and its iTunes Stores

4.1.1.1. Audiovisual programmes and films in the iTunes Store in the United States
4.1.1.2. In Europe: centralised organisation but territory-based sales
4.1.1.3. Audiovisual programmes and films in the iTunes Stores in Europe
4.1.1.4. Audiovisual programmes and films in the iTunes Stores in Canada, Australia and New Zealand
4.1.1.5. Audiovisual services on the iPhone
4.1.1.6. Imprecise financial data
4.1.1.7. Apple in a dominant position in the online film market

4.1.2. Microsoft: a pioneer on the VOD market

4.1.2.1. Windows Media Player, a leading multimedia player
4.1.2.2. Technological solutions proposed by Microsoft for VOD
4.1.2.3. Free VOD service offered by MSN Deutschland
4.1.2.4. VOD on Xbox Live
4.1.2.5. Zune, a portable media player and iPod competitor
4.1.2.6. The growing role of the Entertainment Division in Microsoft's activities

4.1.3 Sony

4.1.3.1. VOD on PSP in Japan and the United States
4.1.3.2. VOD services for the PSP and the PS3 in Europe
4.1.3.3. Initial assessment of VOD services on PSP
4.1.3.4. Music and VOD services to mobiles
4.1.3.5. Television sets connected to the internet

4.1.4. Nintendo
4.1.5. Vudu
4.1.6. Archos
4.1.7. Nokia
4.1.8. Motorola
4.1.9 Samsung
4.1.10. LG Electronics
4.1.11. Netgem

4.1.11.1. Technical solutions for VOD
4.1.11.2. The acquisition of Glowria
4.1.11.3. Audiovisual content rollout

4.1.12. Other IT service companies

4.1.12.1. Arts Alliance Media Ltd
4.1.12.2. 7digital Ltd
4.1.12.3. Sat - Satellite and Transfer GmbH
4.1.12.4. MC&C GmbH

4.1.13. Review of the situation - The implications of diversification and of interoperability in relation to competition on the VOD market

4.1.13.1. The implications of diversification
4.1.13.2. The Digital Entertainment Content Ecosystem project: new phase in the interoperability debate or a strategy to isolate Apple?
4.1.13.3 New questions on interoperability and opening up systems

4.2.1. The telecommunications network operators

4.2.1.1. The benefits of triple-play services for network operators
4.2.1.2. From TV channels distribution to provision of TV channels
4.2.1.3. On-demand services from telecommunications operators
4.2.1.4. Investment in content production and video exchange platforms
4.2.1.5 Attempts to adopt the YouTube and Hulu models
4.2.1.6. VOD services for mobile telephones
4.2.1.7. The search for exclusive agreements

4.2.2. The cable operators

4.3.1. The creation of on-demand services on the internet
4.3.2. Push VOD via satellite
4.3.3. The use of hybrid technologies

4.5.1. The Hollywood majors

4.5.1.1. Movielink as a joint project
4.5.1.2. Approaches of the European markets
4.5.1.3 Warner Bros.
4.5.1.4 The Walt Disney Company
4.5.1.5. Sony Pictures
4.5.1.6. 20th Century Fox
4.5.1.7. Universal Studios (NBC Universal)
4.5.1.8. Paramount Pictures (Viacom Group)

4.5.2. The European film industry

4.5.2.1. SF Anytime
4.5.2.2. Nordisk Film: Sputnik
4.5.2.3. MK2
4.5.2.4. Filmax Entertainment SA
4.5.2.5. The other integrated groups

4.5.3. The independent producers

4.5.3.1. Le meilleur du cinéma français: UniversCiné
4.5.3.2. The Filmmakers' Independent Digital Distribution: Movieurope

4.5.4. The independent distributors

4.5.4.1. Filmladen
4.5.4.2. Cinemalink
4.5.4.3. Belanski
4.5.4.4. Wild Bunch
4.5.4.5. Filmklik
4.5.4.6. Curzon Artificial Eye
4.5.4.7. Manga

4.5.5. The video publishers
4.5.6. Retail businesses

4.5.6.1. American examples: Netflix, Amazon, Blockbuster
4.5.6.2. European companies
4.5.6.3. Lovefilm
4.5.6.4. Glow Entertainment Group
4.5.6.5. Video Buster Entertainment GmbH
4.5.6.6. Cultural goods retailers
4.5.6.7. Amazon soon to launch VOD services in Europe?

5.1.1. Internet services
5.1.2. Examples of pay-VOD offered by television channels

5.1.2.1. Maxdome
5.1.2.2. CanalPlay
5.1.2.3. TF1 Vision
5.1.2.4. Rivideo
5.1.2.5. Pay-VOD services offered by the public broadcasters

5.2.1. The issue of access to television screens
5.2.2. Relations between the television groups and manufacturers

5.3.1. Introduction: The spread of catch-up TV

5.3.1.1. Definition of "catch-up television"
5.3.1.2. Similarity with services offered
5.3.1.3. Territorial limitation
5.3.1.4. Contractual relations with rightsholders still inadequately defined
5.3.1.5. Advertising as a principal source of revenue

5.3.2. The British market

5.3.2.1. The BBC iPlayer
5.3.2.2. ITV Player
5.3.2.3. 4oD
5.3.2.4. Demand Five
5.3.2.5. Sky Player
5.3.2.6. Other catch-up television services provided by British broadcasters
5.3.2.7. Project Kangaroo
5.3.2.8. Project Canvas

5.3.3. The French market

5.3.3.1. The public service channels
5.3.3.2. Arte
5.3.3.3. Canal+ à la demande
5.3.3.4. M6 Replay
5.3.3.5. TF1: free catch-up TV from its web portal
5.3.3.6. The catch-up TV indicator

5.3.4. The German market

5.3.4.1. The private channels
5.3.4.2. ZDF-Mediathek
5.3.4.3. ARD

5.3.5. The Italian market
5.3.6. The Swedish market
5.3.7. Archives

5.3.7.1. Regulatory obstacles
5.3.7.2. Teche RAI
5.3.7.3. The INA service "Archives pour tous"
5.3.7.4. The VRT service "Ooit Gemist"
5.3.7.5. The Video Active project

6.1.1. Definitions: user generated content sites or video-sharing sites?
6.1.2. The socio-economic characteristics of video sharing sites

6.1.2.1. The club effect
6.1.2.2. Dedicated spaces
6.1.2.3. The business model: difficulty in selling the advertising space
6.1.2.4. Audience monitoring

6.2.1. The business model of YouTube
6.2.2. Reducing the risk of disputes
6.2.3. The need for fresh commercial impetus: Project Spaghetti
6.2.5. A policy of reaching agreements with the main programme producers
6.2.6. The opportunity given to independent producers to monetise their works
6.2.7. Difficult negotiations with collecting rights societies
6.2.8. YouTube's profitability in doubt

6.2.8.1. Varying estimates on the service's advertising revenue
6.2.8.2. Assessment of the conomic benefits of Google owning YouTube

6.2.9. The competition between YouTube and Hulu

6.3.1. Territorial limitation and national versions
6.3.2. Partnerships with traditional players
6.3.3. What content is offered?

6.4.1. The adoption of solutions for identifying and filtering works
6.4.2. Systematising agreements with the producers, providers of thematic channels and collecting societies

6.4.2.1. Agreements with the producers
6.4.2.2. Agreements with providers of thematic channels
6.4.2.3. Agreements with collecting societies
6.4.2.4. Interest in sports events
6.4.2.5. The recognition of the host's limited responsibility

6.4.3. International rollout
6.4.4. Encouraging user participation
6.4.5. Children's version
6.4.6. International audience success
6.4.7. Search for solutions to make the service available on mobiles
6.4.8. Switch to HD quality
6.4.9. Distribution on television screens
6.4.10. Funding by advertising
6.4.11. Financial situation

6.5.1. Hulu
6.5.2. Crackle
6.5.3. The launch of video sharing sites by the traditional European players
6.5.4. TerraTV

6.5.4.1. A hybrid service offering both professional and amateur content
6.5.4.2. A business model similar to Hulu's
6.5.4.3. Programmes
6.5.4.4. Protection and remuneration of rights holders
6.5.4.5. Success of the service

6.5.5. Orange Vallée

7.2.1. United States
7.2.2. Europe

7.2.2.1. Lack of a general survey
7.2.2.2. Germany
7.2.2.3. France
7.2.2.4. United Kingdom

7.3.1. Measuring time-shifted audiences
7.3.2. Measuring audiences in the case of on-demand services on digital cable networks
7.3.3. Measuring audiences in the case of on-demand services on broadband networks as part of IPTV offerings

7.4.1. Internet audience measurement: the point of view of the Internet Advertising Bureau
7.4.2. Initiatives for setting out the methodological frameworks and the credibility of the internet audience measurement

7.4.2.1. The IAB's role
7.4.2.2. The certification bodies
7.4.2.3. Forums

7.4.3. The internet audience measurement players

7.4.3.1. International measurement services
7.4.3.2. The Alexa website traffic ranking system
7.4.3.3. Companies carrying out internet audience measurement on the national markets
7.4.3.4. Google Analytics

7.5.1. The international character of video sharing sites
7.5.2. Measurement of the internet video audience in the United States
7.5.3. Measurement of the internet video audience in Europe

7.5.3.1. United Kingdom
7.5.3.2. France
7.5.3.3. Germany
7.5.3.4. Poland

7.6.1. Germany
7.6.2. United Kingdom
7.6.3. France
7.6.4. Measuring website and mobile audiences

8.1. UNITED STATES
8.2. FRANCE
8.3. UNITED KINGDOM
8.4. SPAIN
8.5. ITALY