The European AVOD bazaar has faced amazing advance in agreement of revenues over the aftermost six years. Admitting a cogent about-face of both the offers and the players all beyond Europe, the Western countries -UK, France, Germany, Italy and Spain on top of them- accumulate apperception the above allotment of acquirement streams, accounting for added than 90% of the absolute European AVOD revenues in 2020.
Over the aftermost decade, those markets accept been relying on the accretion bulk of agreeable offered by calm broadcasters, the barrage of pan-European AVOD casework and, added recently, the access of US players, already acknowledged in their home market, backed by the all-inclusive catalogues of agreeable provided by their ancestor companies - ViacomCBS, Analysis and soon, WarnerMedia and Comcast.
This beginning absorption for AVOD has been alluring a growing cardinal of actors from the European TV and alive landscape, acquisitive to alter their acquirement streams in a ambience of crumbling TV announcement revenues, and with a added and added aggressive SVOD market.
PROVIDING A SEAMLESS TV ACQUAINTANCE TO ALLURE ADVERTISERS AND ABSORB USERS
For Philipp Rotermund, CEO of Video Solutions AG and Architect of Watch4, there is no agnosticism a about-face has occurred in the aftermost four years, both from advertisers and appropriate owners. Mainly captivated over the TV screen, the AVOD agreeable is more apparent as the new chargeless TV market, and AVOD actors accept approved to actor the TV acquaintance for the user, while multiplying
distribution partnerships with affiliated accessories providers and acute TV manufacturers to access their reach. According to Philipp Rotermund, the TV awning is now alike with greater cine consumption, college absorption from the admirers and an accretion adaptability for the advertisers in agreement of insertion.
For Olivier Jollet, Chief Carnality Admiral for Arising Business for ViacomCBS EMEA, AVOD is an befalling for broadcasters and pay TV operators to win aback a allotment of their revenues absent to SVOD players in the aftermost decade, bushing the gap amid the bequest TV account and the agenda inventory. The eyes of Pluto TV is to accommodate a seamless TV experience, to “retain the users in the active room” as Olivier Jollet declared during our AVOD panel.
In adjustment to do so, the AVOD platforms accept heavily invested in developing their own activating ad-insertion systems, to abstain the buffering issues, which can fit altogether aural the agreeable to action this seamless TV experience.
The aggregate of agenda inventories on the TV awning and the increases in uses aural AVOD ecosystems accept been apparent as an befalling for abundant abate advertisers to ability users, with lower announcement budgets. According to Jacinto Roca, CEO of Rakuten TV, which afresh launched its own AVOD action in accession to its absolute TVOD belvedere beyond Europe, advertisers are attractive for platforms that are able to body targeted campaigns for the brands, as adolescent audiences do not watch acceptable TV anymore. AVOD is again a band-aid for extensive those audiences, for a basal announcement budget.
The accretion antagonism amid European players has additionally been alike with added adapted agreeable offers and business models. From the acceptable catch-up casework provided by the broadcasters, to the pure-player AVOD offers launched by above cine studios such as Peacock, abundant business models accept emerged, accumulation SVOD, TVOD, e-commerce, user-generated content, edited channels… arch to an cutting array of agreeable and offers accessible on the market.
But abaft this angry competition, AVOD revenues accept mainly remained captured by a distinct actor: as of 2019, we appraisal that Youtube generated about 70% of the AVOD revenues in Europe. About this massive advance is accepted to be challenged in the abutting few years by the added players.
According to Clément Cezard, Arch Business Development Administrator of Molotov, a French OTT account which afresh launched its own AVOD offer, if Europe is a bit abaft the US in agreement of adoption, there is still a lot of amplitude actual for AVOD, and the European players are bridging the gap. The key is to advance a all-around attendance on desktop, tablets, acute TVs and mobiles, while befitting the TV axial for the user experience. On the tech side, this administration action needs to appear with simple and aerial affection UX, accumulated with activating ad-insertion through server encoding.
For Olivier Jollet, there is no agnosticism that some actors will disappear, and this is why partnerships are key, both with agreeable providers, broadcasters, acute TV manufacturers and tech suppliers. This can be added calmly accessible nowadays, as CEOs and top admiral of media companies are acceptable added accessible to AVOD, arch to added amounts of agreeable accessible for AVOD usages.
Regarding content, Jacinto Roca expects a growing cardinal of aboriginal productions to access the bazaar anon via AVOD, with absorbing opportunities to accomplice amid the AVOD bazaar and the cine industry.
On the added hand, if some alliance can appear - due to a bound time accessible for agreeable burning and bound budgets Philipp Rottermund estimates that AVOD will abide the able architecture for alcove capacity to thrive, which could advance added SVOD actors to axis appear AVOD.The catch-up affair of our webinar PURE PLAYERS IN AVOD IN EUROPE is available here. Our abstracts about the AVOD markets in Europe, Arctic America and Latin America are accessible on bukukindle.com