Traditional TV & Home Video - EU-27

In the EU-27, revenue in the Traditional TV & Home Video market market is projected to reach US$60.96bn in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 0.00%, leading to a projected market volume of US$60.97bn by 2029.
The average revenue per user (ARPU) in this market is anticipated to be US$176.50.
In a global context, the majority of revenue will be generated the United States, which is expected to reach US$146.60bn in 2024.
The number of TV viewers in the EU-27 is projected to reach 345.7m users by 2029.
User penetration in the Traditional TV & Home Video market market in the EU-27 is expected to be 77.2% in 2024.
The average revenue per TV user (ARPU) in the Traditional TV & Home Video market market in the EU-27 is also projected to amount to US$176.50 in 2024.
In the EU-27, traditional TV and home video consumption is increasingly challenged by the rise of streaming platforms and evolving viewer preferences.

Definition:

The Traditional TV and Home Video market involves the distribution and consumption of audiovisual content through conventional broadcast television channels and physical media formats like DVDs and Blu-ray discs. It encompasses the production, broadcasting, and viewing of television programs, movies, and other video content within households. Additionally, the market includes advertising placements within television programming and the collection of public TV Licence fees to support public service broadcasting networks, contributing to the diverse landscape of content delivery and revenue generation within the industry.

Structure:

The traditional TV and home video market comprises several key components, including pay TV services, physical home video sales, traditional TV advertising, and public TV Licence fees. Pay TV services involve subscription-based access to premium television channels and content, often delivered through cable, satellite, or internet-based platforms. Physical home video sales encompass the distribution of movies and TV shows on DVDs, Blu-ray discs, and other physical media formats for consumer purchase or rental. Traditional TV advertising involves the placement of commercials within broadcast television programs, generating revenue for broadcasters and advertisers alike. Public TV Licence fees refer to the mandatory charges imposed on households to fund public service broadcasting networks and channels. Together, these elements form the backbone of the traditional TV and home video market, catering to diverse viewer preferences and consumption habits.

Additional Information:

The market comprises revenues, ad spendings, viewers, average revenue per user, and penetration rates. Revenues are generated through purchases. Key players in the market are companies, such as NBCUniversal, CBS Corporation, and The Walt Disney Company.

Pay-TV subscriptions such as DirectTV, AT&T TV, and Sky
Physical home video such as DVD & Blu-ray sales
Traditional TV advertising such as commercial breaks
Public TV license fees such as BBC License in the UK and the Rundfunkbeitrag in Germany

OTT (Over-the-top content) services such as Netflix, Hulu, iTunes, and Pluto.tv
Public license fees collected in the form of a tax such as income tax in the Nordic countries
DVD & Blu-ray rental

The Traditional TV & Home Video market in EU-27 is experiencing significant growth and development in recent years.

Customer preferences: Customers in the EU-27 region have shown a strong preference for traditional TV and home video content. Despite the rise of digital streaming platforms, many consumers still enjoy the experience of watching television shows and movies on their traditional TV sets. This preference can be attributed to several factors, including the comfort and familiarity of traditional TV, the ability to watch live broadcasts, and the wide range of channels and content available.

Trends in the market: One of the key trends in the Traditional TV & Home Video market in EU-27 is the increasing demand for high-definition (HD) and ultra-high-definition (UHD) content. As technology continues to advance, consumers are increasingly seeking higher quality viewing experiences. This trend has led to the production and distribution of more content in HD and UHD formats, as well as the availability of compatible TVs and home video equipment. Another trend in the market is the growing popularity of streaming services offered by traditional TV broadcasters. Recognizing the shift in consumer behavior towards digital streaming, many traditional TV broadcasters have launched their own streaming platforms to compete with standalone streaming services. This allows customers to access their favorite TV shows and movies on-demand, providing greater convenience and flexibility.

Local special circumstances: The Traditional TV & Home Video market in EU-27 is influenced by several local special circumstances. One such circumstance is the diverse linguistic and cultural landscape of the region. Each country within the EU-27 has its own unique preferences and viewing habits, which can impact the content produced and consumed. Broadcasters and content creators must tailor their offerings to cater to these local preferences, resulting in a wide variety of content available in different languages and genres. Another special circumstance is the regulatory environment within the EU-27. The region has implemented several regulations to protect consumer rights and promote fair competition in the media industry. This includes rules on advertising, content standards, and cross-border broadcasting. These regulations can shape the market dynamics and influence the strategies of traditional TV broadcasters and home video distributors.

Underlying macroeconomic factors: The development of the Traditional TV & Home Video market in EU-27 is also influenced by underlying macroeconomic factors. The overall economic growth and stability of the region play a significant role in consumer spending power and willingness to invest in home entertainment. In addition, the availability and affordability of high-speed internet access are crucial for the success of streaming services and the adoption of digital technologies in the market. Furthermore, demographic factors such as population size, age distribution, and urbanization rates can impact the demand for traditional TV and home video content. Countries with larger populations and higher urbanization rates may have a larger customer base and greater demand for television and home video products. In conclusion, the Traditional TV & Home Video market in EU-27 is experiencing growth and development due to customer preferences for traditional TV, trends in high-definition and streaming content, local special circumstances, and underlying macroeconomic factors. As technology continues to advance and consumer preferences evolve, the market is likely to continue evolving and adapting to meet the changing needs and demands of customers in the EU-27 region.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective segment. This spending factors in discounts, margins, and taxes.

Modeling approach / Segment size:

The segment size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant segment. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.