Unable to match Netflix, financially-pressed Hollywood studios are cutting content output and reassessing the DTC model
Price rises are being forced through, however for challengers this is asking a lot from subs, who don’t see an improvement in product or usage
The corporate landscape is fluid—loss-making DTC platforms and revenue-plunging linear channels are candidates for M&A
Despite its scale, YouTube can get overlooked. But its tremendous reach and impact across all demographics make it the internet's universal service provider.
YouTube is still the golden child for creators who want to make a living from their content. For YouTube, this broad base of suppliers ensures a position of strength from which to claim a large revenue share.
Competition from TikTok took some of the shine off YouTube's usage, and forced it promote lower-monetising Shorts. YouTube is pushing heavily into subscriptions, TV sets, and premium content via sports rights to boost the money it makes per minute spent.
Launched in Germany two weeks ago, the à la carte service Primetime Channels broadly competes against Apple TV, Amazon's Prime Video Channels and pay-TV operators like Sky. The wide reach of YouTube provides marketing support.
Google probably sees an opportunity in the fragmented and uncertain German market—but it will eventually roll out Primetime Channels elsewhere in Europe.
Google’s exclusive NFL rights is the content engine for Primetime Channels in the US. The launch in Germany makes it more plausible that Google might bid for premium European football rights such as the Premier League.
As younger viewers continue to migrate from linear TV to online video-sharing platforms, engaging with the audiences on these platforms is no longer simply an opportunity, but a necessity.
However, this ecosystem offers broadcasters limited monetisation opportunities, reduced audience data and worse attribution than the more lucrative broadcast TV model.
In this fragmented media landscape, broadcasters must maximise their digital reach and exploit incremental revenue opportunities, although linear channels and owned-and-operated platforms will continue to provide the bulk of revenues.
We forecast broadcaster viewing to shrink to below half of total video viewing by 2028 (48%)—down from 64% today—as streaming services gain share of long-form viewing time.
On the key advertising battleground of the TV set, broadcasters will still retain scale with a 63% viewing share by 2028, even as SVOD and YouTube double their impact.
Short-form video will continue to displace long-form as video-first apps (e.g. YouTube, Twitch, TikTok) gain further popularity and others (e.g. Facebook, Instagram) continue a relentless pivot to video. This will expand the amount of video watched and transition habits—even amongst older demographics.
Enders Analysis co-hosted the annual Media & Telecoms 2017 & Beyond conference in conjunction with Deloitte, Moelis & Company, Linklaters and LionTree, in London on 2 March 2017.
This report contains the slides used by Tom Mockridge, Matthew Kirk, Andrew Griffith, and Geoff Moelis.
Enders Analysis co-hosted the annual Media & Telecoms 2017 & Beyond conference in conjunction with Deloitte, Moelis & Company, Linklaters and LionTree, in London on 2 March 2017.
The day saw over 450 senior attendees come together to listen to 30 leaders and senior executives of some of the most creative and innovative businesses in the media and telecoms sector, and was chaired by David Abraham.
This report provides edited transcripts of the presentations and panels, and you will find accompanying slides for some of the presentations here.
Videos of the presentations are available on the conference website.
2016 was yet another year in which we saw big changes in the UK’s video consumption habits amongst the under45s, with little let up in the decline of traditional broadcast linear TV viewing for the younger age groups.
Online video-on-demand services will continue to grow, partly at the expense of traditional TV audiences. We also expect the overall volume of viewing to rise, mainly due to wider production of and access to short-form content.
Despite these changes, conventional broadcasters look to be strong for years to come—we estimate they will still account for 80% of all video viewing in 2026.
The temporary cool-off in hype around VR following a very buzzy 2016 is not reducing the flow of investment and talent into the industry, notably in video production utilising 360Video technology; setting the stage for the development of a truly new entertainment medium
Fully immersive interactive worlds will continue to be the mainstay of the video games industry, while video entertainment will exist in a multi-track environment, with some genres (news, documentaries , natural history) making 360Video mainstream well before long-form narrative-driven entertainment
2017 will still be a challenging year for consumer device VR roll-out and mass market adoption; Oculus, Google, and Sony continue to seed the market, providing large scale funding and equipment directly to developers and content producers
In the UK, traditional broadcast television's future appears threatened, as technological developments increasingly allow people to access video content on demand, whether on TV sets or other screens, or from traditional broadcasters or online services.
This report examines the extent to which timeshift viewing, by which we mean personal video recorder (PVR) playback and viewing to catch-up services, has bolstered linear TV.
The linear schedule is still very relevant for both consumers and advertisers, maintaining television’s status as an effective mass medium for building brands.