US SVOD booming market 5 billion at the end of 2015 – Source: DEG and DHR – DR
No surprise for the DVD market
The months follow one another and confirm the decline of the US physical market: $ 650 million lost in 9 months, a decrease of 14.16% for DVD and Blu-ray. American publishers have not found a solution to stem this trend. UltraViolet well be popular in the United States, this is not enough to make it attractive DVD. The physical market turnover reached 3.94 billion dollars, far from negligible, but on a downward trend in double figures. This tends to prove that the period of cohabitation between the DVD and VOD will take some time, mainly because of the strong players in the home ownership rate of Blu-ray.
La rental remains in the red
All forms of physical location are seeing their sales fall, even the “Kiosk” which lost 7.61% in the third quarter and 1.72% year on year. In the end, the rental was down 7.09% to 2.3 billion dollars, 179 million less than in 2014. The explosion of SVOD has not only impacted the market for subscription TV channels pay but also signed the rental death sentence in video clubs. But the rent is still weighing 18.4% of total sales of the video to the end of September 2015.
The digital unabated
Sales dematerialized display the same growth in Q3 than in the remainder of 2015: + 15.7% to 6.43 billion dollars. Once again, digital sales surpass physical sales. So that in the first nine months of 2015, the TSE, VOD and SVOD represent 50.6% of total video business. These are an additional $ 877 million that were earned for the year 2015 compared to 2014. This is due to the performance of digital sales that the market clears $ 47 million more than in 2014 over the first nine months , to end the third quarter at 12.73 billion dollars, up 0.37%. From this standpoint, publishers have managed their digital transformation
The new configuration of the US video market – Source:. DEG and DHR – DR
The SVOD, strong leader
The SVOD weighs 57% of the digital market and 28.6% of the total market in the first three quarters of the 2015. In the third quarter, SVOD weighs 32% of the video market. With a 25% growth in 2015, SVOD is trying to establish itself as the strongest segment of the video market. End 2015, the SVOD exceed the milestone of five billion in revenue, just as he reached $ 1 billion in 2011. Netflix remains the locomotive of the US SVOD market, but other offers appear over months such as premium offerings of Vessel, Vimeo, YoutubeRed. The Statista Institute reported a slightly lower forecast for 2015 ($ 4.7 billion); and estimates the size of the US domestic market at $ 7.5 billion in 2020. Although the market growth rate risk SVOD down from year to year, it could be that more than 50% of total sales the market in 2020.
La SVOD is the locomotive of the US digital market – Source: DEG and DHR – DR
Transactional VOD looking for the lease of
The SVOD flies, but the rental VOD to the act (TVOD) and IS more difficult to win. The TVOD loses 1.02% to 419.2 million dollars in the third quarter of 2015 and fell by 3.48% to $ 1.41 billion from January to September. For its part, the TSE exceeds TVOD in Q3 to $ 433 million, up 14% and shows 18.6% growth over 2015 to 1.37 billion. This is probably here the point of weakness in the US market: TVOD his performance is not up to the studios ambitions
L. IS progresses, but in the shadow of the SVOD – Source: DEG and DHR – DR
Video expenditures exceeded revenues of the room
Approaching the $ 13 billion in revenue from January to September, the video market far exceeds the market hall that according to the DEG achieved 6.64 billion dollars in the first 9 months of 2015, down 5.91 % compared to 2014. This implies that the studios are closely following their digital sales because they know that their future revenues depend primarily on the place they now attach to the development of their digital strategy. Recent Disney advertised the launch of an offer SVOD owner DisneyLife, agrees.
The reconfiguration of the US video market opens new perspectives
The forward march of the US video market continues, with a successful handover between the support Physical and sales, supported by an equipment rate of homes in very high last generation devices: TV 4K 2 million sold in 2015 (+ 494%) with an installed base of more than 2.8 screens; 96 million homes with an HDTV and 80 million Blu-ray player.
US Video Market Outlook to 5 years – Source: Statista – DR
Fears that the market Video collapse recede especially as the outlook for growth in ARPU of SVOD are strong and many age groups with high purchasing power remain to be conquered.
L’institut Statista provides that the only VOD in the US market will weigh nearly 14 billion in 2020. With the addition of DVD sales and residual Blu-ray, related to the effect readers park, it is likely that video market will maintain a turnover of between 17 and 18 billion.