Market Insight

SVoD to account for 70% of the paid-for market in France by the end of 2016

April 27, 2016  | Subscribers Only


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The paid-for online video market in France has grown from €203.8m ($230.5m) in 2014 to €306.5m ($346.6m) in 2015, an annual increase of 50%. The market is forecasted to grow further by 25% to reach €383.0m ($433.1m) in consumer revenues in 2016, and continue growing by 9% on average until the end of 2020, when it will reach €545.9m ($617.3m). The paid-for online video market includes the following business models: digital retail (EST), digital rental (iVoD), and subscription video on demand (SVoD).

For pay TV VoD sector please refer to Television Intelligence on Demand Service coverage.

SVoD has been the main growth driver of French paid-for online video marketin 2015.This segment of the market has doubled in size from the previous year to €199.5m ($225.5m) consumer revenues. It is expected to reach €269.7m ($305m) in 2016, a 35% growth year on year, and continue growing by 11% on average until the end of 2020 when it is expected to reach €410.2m representing 75% of total paid-for market.

In 2015, SVoD accounted for 65% of total consumer spending on online digital video in France.  The main component of growth for SVoD has been Netflix that was launched in France in September 2014. Netflix  accounted for a quarter of the market revenue by the end of 2015, matching in size its main competitor CanalPlay, the subscription online service from Canal+.

IHS estimates that the difference between these two services will grow dramatically over 2016, and by early 2017 Netflix will be twice the size of CanalPlay in terms of consumer revenue. Another major service in the market is the online platform from beIN Sports, beIN Sports Connect, which was launched in the summer of 2014 and accounted for 38% of total consumer spending on SVoD by the end of 2015. beIN Sports Connect, unlike other online services, is not directly competing with the rest of the market as it is fully sports orientated.

2015 also saw consumer gain appeal for EST in the transactional segment, partly at the expense of VoD. Combined transactional online video market amounted to €107m ($121m) consumer revenues in 2015, split evenly between EST and VoD. For TV and Movies genres combined, EST and VoD segment has grown by 4% and 2% respectively, while for Movies only the respective growth has been 6% and 1%. This behaviour has been the direct result of studios adopting a strategy of having online releases take place before corresponding physical releases on DVD or Blu-ray Discs, thus promoting the transactional digital format and providing convenience to consumers seeking early online releases.

Transactional segment also saw changes on the company level, with Apple iTunes conceding its market share over the year, but retaining a strong lead over other market participants. Orange VoD remained the second biggest player, having gained the market share. The three other services occupying leading positions were Microsoft’s Microsoft Movies & TV, Canal+’s CanalPlay VoD, and Sony’s PlayStation Store. In 2015 French market saw two big companies introduce their online movie retail stores, namely Nolim Films by Carrefour, and FnacPlay by FNAC, however they did not manage to make a strong impact on sales in 2015, and failed to attract a large customer base even to present date.

Geography
France
Research by Market
Media & Advertising
Category
Digital Media Video
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