Web TV Monitor 2010

Number of online TV channels rapidly growing: currently about 1,300 in Germany

Berlin, Munich, 15. November 2010. Online TV is a growing market, with the number of providers and variety in services strongly increasing. Currently, there are exactly 1,275 online TV channels in Germany, with about 151 million videos watched daily, mainly on free platforms (96 percent). By 2015, that figure will nearly triple to almost 390 million. Most traffic is generated by video sharing platforms like YouTube, but the market shares are increasing for broadcasters’ catch-up TV sites and other sites with professional content.

With the publication of “Web TV Monitor 2010”, the Bavarian Regulatory Authority for Commercial Broadcasting (http://www.blm.de) and Berlin strategy consultant Goldmedia (http://www.goldmedia.com) present for the first time a comprehensive market overview of providers, use, scope and ad revenue among German online TV channels. The study is based upon extensive primary data research, obtained through a survey in September 2010 of all online TV providers in Germany.

Use of video on the internet is increasingly widespread. About two thirds (65 percent) of all internet users currently access video files at least occasionally (ARD/ZDF Online Study 2010). The high growth of broadband internet connections, lower costs of transmitting large amounts of data, and increasingly better-equipped households all make online TV easier and more attractive to use.

Almost half of all online TV services (47 percent) are hosted by traditional media. Among online services by traditional media, those of print media dominate, making up 26 percent of all online TV services. TV stations’ sub-brands (not including their media and video centers) account for 16 percent of all services, in comparison to a five percent share for radio stations. About a third of all services (34 percent) are internet TV channels produced exclusively for the internet – so-called internet-only channels. The following, in order of market share, also belong to the universe of online TV: corporate TV and video shopping portals (8 percent), non-commercial online TV stations (4 percent), media and video centers (4 percent), video-sharing platforms (3 percent) and communication portals (1 percent). (See chart)

Video sharing platforms and user-generated-content providers like YouTube have an above-average market share, accounting for 89 percent of the 151 million videos accessed per day and 4.7 billion videos accessed per month. On the opposite end of the spectrum, with far fewer videos viewed, are mainly media and video centers and TV channels’ sub-brands, including ARD-Mediathek, ZDF-Mediathek, RTL Now, and Maxdome. These and communication portals like t-online.de, GMX.net, WEB.DE account for about four percent of videos accessed.

Goldmedia forecasts that the number of videos watched will grow by 21 percent per year to 338 million in 2015, driven by user-generated content as well as TV channels’ online video-on-demand services. The high quality of the video-on-demand services’ content will generate longer usage times per visit, and the services will be more attractive for advertisers.

Compared with conventional TV usage, online TV usage is still low. As content grows more attractive and – most importantly – longer, online video usage will increase, decreasing conventional TV’s share. Like conventional television, online TV is mainly watched in the evening. However, its prime time begins slightly before the conventional TV prime time. Online TV is primarily viewed between 6 p.m. and 9 p.m.

The online video market is undergoing rapid change. In addition to new services from large, international players like Google TV, Apple TV, and Amazon, new German portals are also poised to launch. RTL and ProSiebenSat.1 are planning a German “Hulu”, and Media Markt, Vodafone, and ZDF are developing their own fee-based online video centers. In addition, Hybrid TV will strongly contribute to the spread of online TV content in the coming years.

Goldmedia set uniform standards for surveying online TV services in Web TV Monitor 2010. Portals had to be video services that are updated regularly, are accessible via a conventional web browser, are targeted to a German audience, hold licenses or produce the majority of their content, and are compliant with legal standards (copyright and protection of minors). Not included were platforms with irregular video service, link aggregators, private video sharing, and portals without a legal basis in Germany.

Source: Web TV Monitor 2010, BLM - Goldmedia
Goldmedia conducted the study “Web TV Monitor 2010” on behalf of the Bavarian regulatory authority for commercial broadcasting (BLM). “Web TV Monitor 2010” is the first comprehensive market study on the German online TV market with information on prevalence and use, ad forms and ad revenues, scope, and performance figures. The study is based on wide-reaching primary data research gained through survey of all online TV providers (n=1,275) in September 2010. The study contains analyses of the market and its potential as well as a categorization of online TV channels according to service type.

For more information please check:
www.webtvmonitor.de
www.blm.de
www.goldmedia.com

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About Goldmedia:
Since 1998, Goldmedia has provided national and international clients with high-quality consulting and research services in the fields of media, entertainment and telecommunications. Goldmedia offers: in-depth analyses of markets and competitors; forecasts and strategic consulting services; the implementation of new business models; and consulting for restructuring whole companies, including M&A processes in the field of corporate finance. Goldmedia Group: Goldmedia GmbH Media Strategy Consulting, Goldmedia Sales & Services GmbH, Goldmedia Custom Research GmbH and Goldmedia Political & Staff Advising GmbH. The company's head office is in Berlin, Germany.