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Pay-TV and VoD Fails to Compensate for Falling AV

The recently-published 20th edition of the European Audiovisual Observatory’s Yearbook shows that Europe’s AV sector remained flat for a second year in 2013, despite the rise of VoD services that year.

For the third year running, the market generated revenues near to €133 billion, although 2013 was the first time a slight (0.1%) fall was recorded. Physical video was the sector most affected (down 11.3%), but cinema receipts (4.3%) video games (1.8%) and broadcasting services (0.5%) were also down. Growth in pay-TV platforms’ activities (up 2.7%) and production of online VoD services (up 46.1%) was unable to compensate for these declines.

The two growth areas are mainly controlled by American groups, with the result that European AV groups lost 2% of their global market share from 2012 to 2013, and 5.3% between 2009 and 2013.