Market Insight

Revisions in French VoD data

May 28, 2013

Fateha Begum Fateha Begum Associate Director, Connected Devices & Media Consumption

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 Pay-TV and online video-on-demand revenue and spend, for historicals (2011 and 2012) and forecasts, have been revised downwards for France following new information IHS has received from industry sources. Consumer spend across all genres of pay-TV on-demand is now 30 per cent lower for 2012 than previously stated.

VoD buy rates on IPTV platforms have seen the biggest adjustment, with a significant downgrade in the average number of titles purchased on a transactional basis compared to previous data. Most of this change comes as IHS had previously overestimated the growth rate of VoD on IPTV for the years 2011 and 2012.

Part of this reason stems from the changes in VAT rules in France which impacted IPTV services in 2010. A number of IPTV households, particularly those on the lower cost platforms, have simply stopped using their IPTV service, rather than deciding to pay for the incremental price increases imposed for taking triple play packages after the new VAT rules came into effect.

Operator level revenues from subscription-VoD services have also been downgraded as a result of feedback. Previously estimated to be generating €73m we have now lowered this to €16m - much of this stems from an overestimate of the adult segment of the market.

The new data suggests that between 2010 and 2012, pay-TV VoD revenues increased by 25 per cent, reaching approximately €235m in revenues across all pay-TV platforms. On-demand revenues from true- and IP-VoD accounted for 75 per cent of total on-demand revenue, up from 54 per cent in 2009. By 2017, total on-demand revenues are expected to reach approximately €295m, of which more than 85 per cent are accounted for by VoD.

Online video-on demand data have been revised downward for 2011-2012 and forecasts.  French VOD consumer spending level across different content types (movies and TV) reached €51m in 2012. Consumer revenues (after sales tax) for the online rental market reached €47m.

Retail (EST) consumer spending has also been decreased by approximately 10 per cent following a new pricing survey of the major international video services and local providers. Retail consumer spending is now estimated to have reached approximately €50m in 2012, representing €46m in terms of consumer revenue.

By 2017, total online rental revenues are expected to reach €109m, total retail (EST) revenues to be €101.2m, and SVoD revenues to reach €47m. SVoD forecasts may see subsequent upgrades depending on the launch plans of major players such as Netflix.

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