Opening up new areas of business and revenue potential with over-the-top content

goetzpartners analysis

goetzpartners general TIME Management Consultants

Internet-enabled, hybrid devices will increase by 29% a year on average until 2015 in German households. Today, 17.1% are already using web-TV offerings on their hybrid TV sets. There is great consumer interest in traditional functions, such as time-shift TV and video-on-demand (VoD), as well as surfing the internet or access to preselected apps. This over-the-top (OTT) content offers market participants attractive new opportunities. Content providers can generate new revenue potential via subscription, transaction and advertising-based business models in which device manufacturers and infrastructure operators can also participate through advertising and revenue shares. However, digital content can only be monetized if it is made available independently of proprietary platforms. These are the results of the latest IPTV study by goetzpartners based on a representative consumer survey conducted in Germany, the UK and France.

With penetration of hybrid devices in Germany reaching around 13.7 million devices in 2011, the regular use of non-infrastructure-bound IPTV offerings also rose. It has increased significantly - by 54% on average - in Germany compared to 2008. There was a significant rise in the regular use of special VoD offerings - 7.1% of those surveyed – thanks to intensified marketing activities and direct integration in the portals of hybrid devices. This represents an increase of 128% compared to 2008. Video content can now be consumed on the most attractive, largest screen in the household via hybrid TV sets. A total of 8.9% of the individuals surveyed already indicate regular use of web TV content via a hybrid TV set and a further 8.3% irregular usage. These offerings attracted even greater interest in the UK and France, reflected by 14.2% and 15.4% regular usage respectively.