Online TV in Germany - GOLDMEDIA · Source: Goldmedia Web TV Monitor 2010, N=1,275 15 TMost online...

Online TV in GermanyW b TV M it 2010Web TV Monitor 2010

Commissioned by the Bavarian Regulatory Authority for Commercial Broadcasting – BLM

October 2010

Goldmedia GmbHStrategy Consulting Strategy Consulting

Dr. Klaus Goldhammer, Dr. Michael Schmid, Christine Link , Solveig Börnsen

Oranienburger Str. 27, 10117 Berlin, GermanyTel. +49 30-246 266-0, Fax +49 30-246 266-66

Info[at]Goldmedia.de, www.webtvmonitor.de

Web TV Monitor 2010Contents

1. Introduction and definition of sample

2 Structure of the German online TV market2. Structure of the German online TV market

3. Use and scope of online TV in Germany

4 Economic conditions in the online TV market4. Economic conditions in the online TV market4.1 Advertisement and marketing

4.2 Forecasts

5. Executive summary

2

Web TV Monitor 2010Research objectives and methodology

Client and objectives

Client: Project time frame: July to October 2010

Methodology

Goldmedia’s study on the use of German online TV was produced for the Bavarian Regulatory

oje e e y o O o e 0 0

Primary data research through survey of all German online TV providers (n=1,275) via online and offline questionnaires

Response: data on 186 Web TV channels (15%) Bavarian Regulatory Authority for Commercial Broadcasting (BLM)

p ( )(corresponding to 146 completed questionnaires)

Survey period: September 7th – 27th, 2010

17 Interviews with industry experts and representatives

Study objectives:

Give overview of the German online TV market

y

Secondary data through online desk research

Forecasts via top-down and bottom-up analyses

www webtvmonitor de 275

Quantify and categorize online TV market in Germany through survey of all providers

www.webtvmonitor.de

Response rates

Mon

itor

2010

, n=

1,2

1,275186

Describe use and economic stateof online TV in Germany

Provide market analyses and forecasts for online TV in

15%

oldm

edia

W

eb-T

V-M

Web-TV-Angebote insgesamt/Aussand

Dargestellte Angebote/Antworten

3

forecasts for online TV in Germany

Sour

ce: G

o

Web TV channels/Sent

Displayed channels/ Responded

Goldmedia’s six-attribute definitionof a Web TV channel

Videois a central feature of the site

1

Browser based / accessible online If a Web TV channel

2

German target audience(German language or subtitles)

channel fulfills all six

of these 3

Content is active (i.e. updated regularly)

requirement, it is included

in the4

Own or licensed content *

in thedatabase.5

Comply with legal standards (no pornography etc., imprint) 6

4

* Because it was not possible to reliably code editing of content, data on content editing could not be gathered in the survey.Source: Goldmedia Web-TV-Monitor 2010

The universe of online TV: nine categories of Web TV channels*

Web TV channels(online only)

1Provider withoutlabeling9 Undocumented

Online subbrands of print and radio

media

(o e o y)

2Online TV aggregators

Sharehoster & copyright pirates

labeling

Corporate video/ id h i

Online subbrands of TV channels 3

4

pornography

Non-commercial web TV channel

videoshopping 4

5Non German

N bliMedia and video

centers 6

7

Non-publicVideo-Sharing

Video sharing

Interactive multimedia portals

7

8p

* According to the Goldmedia definition Source: Goldmedia Web TV Monitor 2010

Web-TV-Monitor 2010Contents





4.2 Forecasts


6

1,275 Web TV channels in Germany, with at least 47% belonging to conventional media

0% 10% 20% 30% 40%

Share of online TV channels (base = 1,275 web TV channels)

Online subbrands of print and radio

34%

31%

Web TV channels(online only)

Online subbrands of TV channels

media

16%

Non-commercial

Corporate video/ videoshopping

8%

4% Non commercial web TV channels

Media and video centers

4%

4%

Video sharing

I t ti

3%


Source: Goldmedia Web-TV-Monitor 2010, n=1,275

1%

Informative content often offered as entertainment in the German Web TV market

83%

“Which kind of content do you provide?” (multiple responses possible)

65%55%

48%

30%25%

Aktuelle Infof

Service Infof

Unterhaltungf

Trailer/ Unterhaltungf

SonstigesActual infof

Service infof

Entertainmentf

Trailer/ teaser/ Entertainmentf

Othernonfiktional nonfiktional nonfiktional Teaser/Promo fiktional

* Pure analysis of responses, no loading according to the views, multiple responses possibleSource: Goldmedia Web-TV-Monitor 2010, n=186 of 1,275 web TV channels

non-fiction non-fiction non-fiction promo fiction

Actual information available on over 80 percent of the web TV channels, and service information is available on nearly two thirds of channels Informative content is most prevalent in the German web TV market!

Key facts

8

nearly two thirds of channels. Informative content is most prevalent in the German web TV market!

Almost half of the Web TV channels shows promotional content!

Web TV Monitor 2010Contents





4.2 Forecasts


9

German video usage: 151 million views per day – dominance of video sharing

Views per day (in millions)

Average number of video views per day in the German online TV market in 2010

151 million views per day

135.3(89%)

0 40 80 120 160

Video-Sharing-Plattformen

p y4.7 billion videos per month

Video sharing ( )

6.2(4%)

5 7

Mediatheken/Videocenter/Submarken TV MedienMedia and video centers;online TV subbrands

5.7(4%)

2.7(2%)

Kommunikationsportale

Submarke Print/Hörfunk


Online subbrands of print and radio media (2%)

1.7(1%)

SonstigesSource: Goldmedia Web-TV-Monitor 2010

p

Other

UGC has the highest share of views, but no professional contentM di d id t h hi h lit t t ll l i ti

Conclusion

10

Media and video centers have high-quality content as well as longer service time per view – far more potential in media budget

Online TV in Germany: top 10 providers account for 93% of use

German web TV channels, sorted by number of video views, 2010

0,9

1 Discontinuous graph – sectionremoved!

Top 10 providers have up to several million video views per day

Discontinuous graph – sectionremoved!

Top 10 providers have up to several million video views per day

0 6

0,7

0,8

nof

view

s) million video views per daymillion video views per day

0,4

0,5

0,6

ws

(in m

illio

0,2

0,3

Dai

ly v

iew

Micro-providers: less than 100 views per day

Micro-providers: less than 100 views per day

0

0,1

1 101 201 301 401 501 601 701 801 901 1001 1101 1201

German web TV channels, sorted by number of video views, 2010

11

Source: Goldmedia Web-TV-Monitor 2010

Usage during the day: like conventional TV, online TV is mainly watched in the evening

45%

Use of online TV and online radio during the day (09/2010)

Web TV peaks at nightAttention

35%

40%

p gAttention: Combination of different units –

Viewer/user levels of conventional TV and for Internet usage are higher than those for online TV and online radio at all times of the day.

25%

30%

30%

25%

Example: 25% of all daily online TV station hits take place between 6:00 p.m. and 9:00 p.m.

16%17% 18% 17%

18%20%

20%

25%

15%

18%

14%

17%

25%

6%

11% 11% 15%16% 17% 17% 18%

16%

13%12%10%

15%

Web-TV (Anteil an tgl. Gesamtabrufen)

9%

14%

4% 10%

12%

16%

Online TV (share of daily total recall)

1%2%

6%

7%

0%

5%

05 00 06 00 07 00 08 00 09 00 10 00 11 00 12 00 13 00 14 00 15 00 16 00 17 00 18 00 19 00 20 00 21 00 22 00 23 00 24 00

Webradio (Anteil an tgl. Gesamtabrufen)Internetnutzung ("gestern genutzt")Sehbeteiligung klassisches TV

4%

1%

6%

10%Online radio (share of daily total recall)Internet usage (“used yesterday”)Audience rating of conventional TV

05.00-06.00 07.00-08.00 09.00-10.00 11.00-12.00 13.00-14.00 15.00-16.00 17.00-18.00 19.00-20.00 21.00-22.00 23.00-24.00

12

Sources: Goldmedia analysis by www.agf.de, ARD/ZDF-Onlinestudie 2010, Goldmedia Web TV Monitor, n=186 ; Goldmedia Webradiomonitor 2010, n=609

Majority of Web-TV providers satisfied with access figures – but not with profitability

Web TV Monitor 2010: Access figures/viewers and profitability of online TV

“How satisfied are you with your TV’s access fi i l ”

“How satisfied are you with your TV’s fi bili i l “

11,4%sehr zufrieden 17 4%

6,4%

figures in general?”

53% 24%

profitability in general?“

Very satisfied

41,2%

sehr zufrieden

eher zufrieden

neutral32,1%

17,4%53% 24%Very satisfied

Rather satisfied

Neutral

15,8%

29,8%eher unzufrieden

sehr unzufrieden

14,7%

29,4%Rather unsatisfied

Very unsatisfied

1

14,7%

1Source: Goldmedia Web TV Monitor 2010, n=186

C l i

Satisfied with access figures/viewers Satisfied with profitability

Conclusion

Good access figures/viewers, bad viability: only 17.5 percent of providers are unsatisfied with their web video access figures, but 44 percent are unsatisfied with viability -- business models have to yet to become established

13

have to yet to become established

Success of ads and paid services mainly depends on availability of premium content






4.2 Forecasts


14

96 percent of all Web-TV services are free!Advertising most important business model

Share

Web TV’s business models 2010

Base: 1,275 Web TV Channels 2010

53%

95%

9%

2%

38%

4%

0% 20% 40% 60% 80% 100%

Mediatheken/ Videocenter

Web-TV-Angebot (Online-Only)

Partially fee based1%

Fee based3% Media and video centers

Web TV channels (online only) 95%

97%

100%

100%

2%

1%

4%

1%

Web TV Angebot (Online Only)

Submarke klassischer TV-Medien

Kommunikations-Portale

Videoshopping

Web TV channels (online only)

Online subbrands of TV channels


Videoshopping

100%

100%

100%

Video-Sharing-Plattform

Nichtkommerzieller Web-TV-Sender

Submarke klassischer Radio-Medien

pp g

Video sharing

Non-commercial web TV channels

Online subbrands of radio stations100%

100%

Corporate TV

Submarke klassischer Print-Medien

Free96%

Corporate TV

Online subbrands of print media

TM t li TV h l d t d bli th f iFazit

Source: Goldmedia Web TV Monitor 2010, N=1,275

15

TMost online TV channels were ad-supported, public, or other free serviceshere is some paid content, especially among the few video centers

Pre-roll is the most important form of advertising because of short videos

Share of advertising on online video sales

Pre-rolls currently make up

Key facts

Post-roll 10.7%

over 70 percent of the online video advertising market

Mid-roll

The most popular clips are currently a maximum of 5 minutes long

Pre-roll 72.9%

Mid roll 16.5% The length of each video

clip can be increased with premium TV channels’ content content

High potential for mid-roll and post-roll, especially with longer videos and if with longer videos and if hybrid TV succeeds. Allowing online video advertising to enter the li i

16

Source: Goldmedia Web TV Monitor 2010, n=186

living room.






4.2 Forecasts


17

Goldmedia forecast: online video access figures/ viewers 2011 - 2015

388 400

Goldmedia forecast: access figures/viewers of online videos per day in Germany 2008 - 2015

So far, growth in access

Conclusion

Forecast

293

344

388 400 figures/viewers is primarily from UGC (Youtube etc.)

CAGR 2010-15

21%

CAGR 2010-15

21%

Forecast

245

293 300

mili

ons

Growth engines in thefuture: hybrid TV and online video services

21%21%CAGR CAGR

2008-10%

151

201 200

ss f

igur

esin with premium content

from conventional TV

Exception: some Web TV

53%

65 96

100

Acc

es

pchannels have only moderate growth, with demand already partly

-

2008 2009 2010 2011 2012 2013 2014 2015

declining

Forecast for 2015:388 million views/day

18

2008 2009 2010 2011 2012 2013 2014 2015

Source: Goldmedia Web TV Monitor 2010, N=1.275

388 million views/day12 billion views/month

Looking to the future:high potential of video advertising

Today, revenue from fee-based Web-TV services is roughly equal to f li id d i i

Web TV Monitor 2010 - assessment of providers’ financing in 2015 Conclusion

Online potential: h frevenue from online video advertising.

“By 2015, the revenue from fee-based Web-TV services will

“Online video advertising will be established as a standard form of

three-quarters of providers believe that video advertising will be based Web TV services will

dominate.”established as a standard form of advertising by 2015.”

advertising will be established as a standard form of online advertising75% 28%

38%trifft voll zu

trifft eher zu18%

10%In particular, the possibility of increasing video

%Fully agree

Agree

37%

trifft eher zu

neutral

trifft eher nicht zu

34%

length creates high potential, especially for mid-rolls

Agree

Partly agree/ partly disagreeDisagree

8%

16% trifft überhaupt nicht zu 13%

24% Skepticism exists about the potential of fee-based business models

g

Fully disagree

1 1

19

Source: Goldmedia Web TV Monitor 2010, n=186

business models

Online advertising market records significant growth, buoyed further by hybrid TV!

400

Goldmedia forecast: net advertising revenue from online video adsin millions €, 2009-2015 in Germany

279332 346

400

os

CAGR Net (2009-2015):+43%

133

226200

lions

of

euro

4080M

il

0

2009 2010 2011 2012 2013 2014 2015

Goldmedia forecast

Base: assessments by providers and surveyed media agencies external effects

Notes

Source: Goldmedia analysis 10/2010

20

Base: assessments by providers and surveyed media agencies, external effects

From 2012 onward, Hybrid TV will boost sales of video ads






4.2 Forecasts


21

Web TV Monitor 2010Executive summary

Online TV market in Germany

1,275 total web TV channels in Germany (status as of 09/2010)

Nearly half (47 percent) are subbrands of conventional media, of which 26 Germany y ( p ) ,percent belong to print media, 16 percent to conventional TV channels –excluding media and video centers - and 5 percent to radio media

One third of the online TV channels are online-only servicesy

More than 82 percent provide current information services

Three percent of the online TV channels are public

Usage Currently 151 million video views per day, equivalent to 4.7 billion videos a month (status as of 09/2010)( / )

Goldmedia forecast: rise to almost 388 million views by 2015, with an average annual increase of 21 percent

UGC ( Y b ) h h hi h h f i d i b UGC (e.g. Youtube) has the highest share of views; extreme dominance by the top ten players, with 93 percent market share

Usage during the day: as with conventional TV, online TV is mainly viewed in th i b t 6 00 d 9 00

22

the evening between 6:00 p.m. and 9:00 p.m.

Web TV Monitor 2010Executive summary

Advertisement/marketing

Advertising most important business model - 96 percent of all Web-TV services are free!

Online advertising revenues of all German online TV channels were 40.1 million euros in 2009 (including video & display ads, spons, etc.)

Online advertising market to record significant growth up to 2015, providers and media agencies expect total revenue of 345.5 million euros

Pre-roll is the most important advertising because of short videos

Paid-Content Just 3 percent of all online TV channels have fee-based content

The availability of premium content in the "living room” is attractive

Trends Increasingly attractive and longer video content increases potential for video advertising, especially for mid-rolls and post-rolls

Longer videos and hybrid TV will help bring online video advertising into the Longer videos and hybrid TV will help bring online video advertising into the living room, especially from 2012 onward

According to Web-TV providers, various providers’ national and international VOD portals will contribute significantly to the spread of Internet video VOD portals will contribute significantly to the spread of Internet video content in the future

23

Goldmedia GmbH Strategy Consulting

Dr. Klaus Goldhammer,Dr. Michael Schmid, Christine Link, Solveig Börnsen

Oranienburger Str. 27, 10117 Berlin, GermanyTel. +49 30-246 266-0, Fax +49 30-246 266-66

info[at]Goldmedia.dewww.Goldmedia.de www.webtvmonitor.de

Online TV in Germany - GOLDMEDIA · Source: Goldmedia Web TV Monitor 2010, N=1,275 15 TMost online...

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