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The use of video-on-demand (VoD) and over-the-top (OTT) content is rapidly increasing in Germany. This is resulting in far-reaching structural change within the TV sector, similar to the changes already experienced in the music and publishing industries. This was the conclusion drawn by the goetzpartners analysis presented at the Audiovisual Media Days 2014 in Munich.
At the event, Alexander Henschel, Managing Director at goetzpartners and responsible for the media sector, explained the key success factors and requirements from the consumer’s point of view. Moreover, he outlined possible business models and their respective potential going forward.
Henschel, however, is skeptical about Germany’s prospects: “Germany is in danger of losing touch in the TV market and, in particular, is struggling to keep pace with international players in the fast-growing OTT market.” This market segment in Germany is characterized by fragmented isolated solutions from individual broadcasters. Henschel believes that the blockade mentality of German broadcasters towards international platforms is a dead-end street, and does not promote their continued viability, as large US players like Netflix are threatening to simply overrun the German and European markets.