New audiovisual services and their impact on the funding of audiovisual content

1. New audiovisual services and potential
impacts on production
June 2018
Gilles Fontaine
Head of Department for Market Information

2. 1. THERE IS NOT SUCH THING AS “DIGITAL PLATFORMS”

3. COMMERCIAL TV
VIDEO
Public funding
Advertising
CINEMAS
PAY-TV
Rent/purchase
Subscription
PSBs
TVOD
SVOD
Free online
“NEW” SERVICES
Replay
Web only

4. 2. NEW PLAYERS STILL SMALL BUT GROWING FAST

5. Cinemas
6%
Video
4%
TVOD
1%
Pay-TV
31%
SVOD
4%
TV Advertising
29%
Video online advertising
2%
PUBLIC
FUNDING
23%
RENT/PURCHASE
SUBSCRIPTION
ADVERTISING
NEW SERVICES WITHIN THE AUDIOVISUAL SECTOR GLOBAL REVENUES
NEW SERVICES STILL A MINOR PART BUT REPRESENT MOST OF THE
GROWTH

6. 3. ONLY A HANDFUL OF NEW PLAYERS PRE-FINANCE ORIGINAL CONTENT

7. ONLY A HANDFULL OF PLAYERS
SVOD:
• Only a few players invest significantly
• Will the emerging national broadcasters platforms invest in original
programming?
FREE ONLINE:
• Facebook+YouTube = 56% of video advertising
• Broadcasters: 20%
• Actual prefinancing of programmes?
• Destination site vs. video sharing platforms
Broadcasters
20%
YouTube
32%
FaceBook
24%
Others
24%
Source: IHS, 2018

8. 4. REBALANCING TOWARDS CONTENT PRODUCTION?

9. • General savings on distribution costs could mean higher share for content
• New opportunity for direct-to-consumer “low cost” productions
• Lower entry barriers translates into high competition
• Risk of Facebook/YouTube dependence
• Incentive for (major) broadcasters to move towards high-end TV series could imply a
rebalancing of broadcasters’ budgets:
• from film to TV Series
• from national productions to international coproductions
• Demand for high-end content will increase budgets and imply more international
exploitation
REBALANCING TOWARDS PRODUCTION?