June 11, 2018
Among Western European countries, Germany and France have been slow to adopt subscription streaming video, including Netflix and Amazon Prime Video. That appears to be changing in Germany.
At the end of 2017, 18% of all German households were subscribing to at least one paid video-on-demand service, according to new data from Goldmedia.com. The market appears to be on a growth trajectory. Total revenue at the end of 2017 amounted to €1.1 billion and are anticipated to more than double within only five years, climbing to €2.5 billion by 2023.
Amazon Prime Video and Netflix continue to lead the pack in the German VOD market. Other players are British satellite TV operator Sky, Maxdome, Apple iTunes and Google Play. Specialist sports streaming services such as DAZN and Eurosport are also seeing an increase in users.
Goldmedia said SVOD services account for the highest share of turnover in the German VOD market with a market share around share of 74%, growing to 80% share by 2023.
Similar to the U.S., Amazon and Netflix are focusing heavily on producing original content in Germany. Goldmedia said licensed titles streamed via transactional VOD and electronic sellthrough are also popular among users, notably theatrical movies available to view on-demand just months after they have been released in cinemas.
The report said other key market drivers include access to content via smart TVs or special streaming devices such as the Amazon Fire TV Stick. The growing number of German households with high-speed broadband connections is also boosting VOD’s technical reach.
The rural market is continuing to play catch-up and is projected to be a major source of market growth going forward. Goldmedia predicts that every other household with a broadband connection will subscribe to a VOD service by 2019.
Unlike the U.S., major sports programming in Europe is increasingly going online. The first match of the 2017/2018 Bundesliga soccer season could only be viewed online via Eurosport’s streaming media device.
Amazon just announced an exclusive streaming deal with the U.K.’s Premier League, beginning in 2019.