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The Traditional TV & Home Video Market in Europe is facing a mild decline, influenced by shifting viewer preferences towards streaming services, increasing competition, and evolving advertising strategies that challenge conventional revenue models.

Customer preferences: Consumers in Europe are gravitating towards on-demand content, favoring streaming platforms that offer personalized viewing experiences. This trend is fueled by younger demographics who prioritize flexibility and convenience, often consuming media across multiple devices. Additionally, cultural nuances play a role, as local content production gains traction, appealing to regional tastes and preferences. The rise of binge-watching habits has further diminished the allure of traditional TV schedules, reshaping how audiences engage with video content and prompting shifts in advertising strategies.

Trends in the market: In Europe, the Traditional TV & Home Video Market is experiencing a decline as consumers increasingly favor on-demand streaming services over conventional broadcasting. This shift, primarily driven by younger audiences seeking flexibility and convenience, is reshaping viewing habits, with many opting for binge-watching and multi-device consumption. Additionally, the emphasis on local content production is resonating with regional audiences, leading to a rise in culturally relevant programming. As a result, traditional advertisers must adapt their strategies to engage viewers effectively, indicating a significant transformation within the industry landscape.

Local special circumstances: In the United Kingdom, the Traditional TV & Home Video Market is influenced by a strong public broadcasting culture, with the BBC setting high standards for content but facing challenges from streaming services. In Germany, regional broadcasting regulations promote local content, fostering loyalty among viewers but slowing the shift to on-demand platforms. Italy's market grapples with a diverse regional identity, leading to varied viewing preferences that favor localized programming. Meanwhile, in France, strict media quotas for French content encourage traditional broadcasters to innovate, yet consumers increasingly turn to streaming for convenience.

Underlying macroeconomic factors: The Traditional TV & Home Video Market in Europe is significantly shaped by macroeconomic factors including economic stability, consumer spending habits, and regulatory frameworks. In countries like the UK, a robust economy and high disposable income enable consumers to invest in premium content, but inflation and rising living costs challenge this trend. Germany’s focus on local content, supported by fiscal policies favoring regional productions, promotes viewer loyalty while slowing the transition to digital platforms. In Italy, economic diversity influences regional viewing preferences, complicating content distribution. France’s regulatory support for local content fosters innovation, yet economic pressures drive consumers toward cost-effective streaming solutions, reshaping traditional viewing habits.

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 ÌÇÐÄÆƽâ°æ), 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 ÌÇÐÄÆƽâ°æ data is reweighted for representativeness.