Traditional TV & Home Video - Germany

Revenue in the Traditional TV & Home Video market market in Germany is projected to reach US$16.19bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.02%, resulting in a projected market volume of US$16.20bn by 2029.
The average revenue per user (ARPU) in Germany is expected to amount to US$256.90.
In global comparison, most revenue will be generated the United States, which is projected to reach US$146.60bn in 2024.
The number of TV Viewers in Germany is expected to amount to 63.7m users by 2029.
User penetration in the Traditional TV & Home Video market market in Germany is expected to be at 75.7% in 2024.
The average revenue per TV user (ARPU) in the Traditional TV & Home Video market market in Germany is projected to amount to US$256.90 in 2024.
In Germany, the traditional TV and home video market is experiencing a gradual shift towards streaming services, prompting broadcasters to innovate their content delivery strategies.

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 Germany has been experiencing significant changes and developments in recent years.

Customer preferences: German consumers have shown a strong preference for streaming services and on-demand content. This shift in preference can be attributed to the convenience and flexibility offered by these platforms, allowing viewers to access their favorite TV shows and movies at any time and from any location. Additionally, the increasing availability of high-speed internet connections has made streaming services more accessible and appealing to a wider audience.

Trends in the market: One of the key trends in the Traditional TV & Home Video market in Germany is the decline in traditional TV viewership. This can be attributed to the rise of streaming services and the increasing popularity of online video platforms such as YouTube. As a result, traditional TV broadcasters are facing challenges in attracting and retaining viewers. In response to this trend, many broadcasters are launching their own streaming services and partnering with online platforms to reach a larger audience. Another trend in the market is the increasing demand for original content. German viewers are becoming more selective in their viewing choices and are seeking out unique and compelling content. This has led to a surge in the production of original TV shows and movies by both traditional broadcasters and streaming platforms. The competition for high-quality content has intensified, with platforms investing heavily in original productions to attract and retain subscribers.

Local special circumstances: Germany has a strong public broadcasting sector, with public service broadcasters playing a significant role in the Traditional TV & Home Video market. These broadcasters are funded by a mandatory license fee paid by all households with a TV or radio, which allows them to produce and broadcast a wide range of content. This unique funding model has helped to maintain a diverse and high-quality content offering in the German market.

Underlying macroeconomic factors: The German economy is one of the largest and most stable in Europe, providing a favorable environment for the Traditional TV & Home Video market. The country has a high disposable income and a strong middle class, which enables consumers to spend on entertainment and leisure activities. Additionally, Germany has a high internet penetration rate, with a large proportion of the population having access to high-speed internet connections. This has facilitated the growth of streaming services and online video platforms in the market. In conclusion, the Traditional TV & Home Video market in Germany is evolving rapidly, driven by changing customer preferences and advancements in technology. Streaming services and on-demand content are gaining popularity, leading to a decline in traditional TV viewership. The demand for original content is also on the rise, with broadcasters and platforms investing in high-quality productions. Germany's unique public broadcasting sector and strong macroeconomic factors contribute to the growth and development of the market.

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.