16 March 2010

KEY FINDINGS

  • The internet will play an important role in the audiovisual media industry in the future.
  • ITMedia Consulting estimates that in Western Europe, total revenues generated by online video services will grow from €737 million in 2009 to €2.7 billion in 2013, with a compound annual growth rate of 39%.
  • Internet video services use two kinds of business models: pay and free. Pay business models are pay-per-download (DTO, DTR and rent VoD) and subscription. Free business models generally  use commercials inserted in the download content.
  • Two successful cases are Hulu, launched in March 2008 by NBC Universal, Fox Entertainment Group and ABC, offering commercial-supported streaming video of TV shows and movies either on PCs or TVs, and the BBC iPlayer, which offers catch-up TV and radio programmes broadcast on all BBC channels.
  • A new trend in online video distribution is the “Over the Top TV” (OTT). It allows people to view internet content which is delivered via broadband connection, and bypasses the traditional TV service providers.
  • Currently, watching online services is complementary to TV viewing in reaching audiences and creating value. Therefore, broadcasters will face and wisely deal with fierce competition coming not only from their rivals, but also from internet content providers, studios, networks and internet services providers.
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