Articles IDFA 2019

IDFA 2019: Eurovod study reveals 55,000 feature films, 6,500 TV titles, 187,000 TV series episodes were available in 2018

by Marco Spagnoli | 20.12.2019

Share on Facebook | Twitter | LinkedIn

Recently an important study on European independent platforms and on the VOD and SVOD markets was presented at the annual Industry of Amsterdam’s IDFA, the world’s most important documentary festival.
The study was promoted by Euro Docs and Docs Barcelona – this last festival being a new partner of MIA Market’s doc division – and devised by Eurovod, the European Federation of VOD and SVOD platforms, aimed at the distribution of motion pictures and independent audiovisual products.

Founded in 2010, Eurovod brings together 32 VOD services related to 19 countries for 34 territories, its watchwords being cooperation, networking, resource pooling and, above all, transparency and data exchange in order to grasp the specifics and true potential of the European market.

Eurovod Managing Director Silvia Cibien has repeatedly stressed the necessity to collaborate at a European level to tackle US tech giants like Netflix, Amazon, Apple TV and Disney +, but also to create new types of businesses that can protect Europe’s cultural diversity and offer producers’ the possibility to achieve important results, both economic and cultural.

In 2018, among the top 5 global OTT market revenues were the SVOD players Netflix, Amazon, Disney, AT&T followed quite modestly by the US Baseball League, Viacom, Google, Comcast, Lionsgate and NBA. “In Europe, but also in the rest of the world, we’re faced with a market that is still very fragmented,” says Silvia Cibien “There are many different players with diversified business models swimming in a business dominated by ‘tech giants’, advertising and e-commerce.”

Although a growing market, it’s however clear that at the moment the development of VOD fails to compensate for what has been lost by the drop in rentals and sales related to the ‘physical’ product. Furthermore, Pay-TV is still prominent, controlling 87% of the general profits and 65% of the subscribers. In 2017, the value of the European audiovisual market was around € 112 billion overall with On Demand taking home 5% of that value compared to 6% of theatrical, and Pay TV dominating with its 30%.

In 2018, the Home Video market split – 67% coming from the DVD market and 35% from TVOD. As for SVOD, Pay TV has reached 87%, while OTT 13%.
Not to mention that the home video services are a true Babel: in Europe in 2018, 220 SVOD services coexisted in 445 different language versions, while there were 371 languages for the 130 TVOD services. Looking at the Average Revenue Per User, ARPU asserts that individual users spend an average of 6.7 Euros for SVOD services compared to an average of 20.4 Euros for TVODs.

In 2018, Netflix and Amazon in Europe reached 79% subscribers (77 million) and 74% of the nearly 5.4 billion Euro revenue, exploiting a strategy that chooses to back original productions at the expense of European acquisitions. The European podium sees Netflix in first place grossing 54% of the aforementioned 5.4 billion of the SVOD market followed by Amazon with 20%. Third at a distance with only 6% market share, Sky Europe followed by MTG-Viaplay with 4 %, HBO with 2%, ProSiebenSat1 with 2%, and CMORE also with 2%.

“The good news is that, thanks to our VOD platforms, European titles have definitely been circulating more, reaching diversified and niche audiences and offering a vaster range of content, often innovative both in terms of formats and storytelling, and next to this, the documentary genre has been thriving like never before,” Ms. Cibien underlines, “34% of the market titles are available exclusively in VOD, 43% of the theatrical titles of the last three years are available online and the current online catalogue includes 55,000 feature films, 6,500 television titles 187,000 episodes of TV series.”

According to Ms. Cibien the commercial but also cultural challenge to American platforms should unfold along specific lines, “We need to offer the audience a varied library presented in an extremely smart editorial fashion and aimed at targeted audiences, but at the same time insist on diversity when compared to the titles supplied by our main competitors. In this sense it’s clear that European platforms should focus more on European and independent titles, but also on enhancing those vast libraries already present in Europe. There is no other way to become stronger and more competitive than to work together,” Eurovod Managing Director concludes.