December 2006
Video by numbers: The digital retail revolution
13 Tables & Charts /
34 pages
Available formats: Print & PDF
This report examines Internet-delivered major Hollywood movies available to consumers in Europe on an ownership model - otherwise known as "digital retail" or "download-to-own". The report analyses Western European online movie service providers and their business strategies regarding digital retail, whilst also employing data on broadband penetration and digital retail movie revenues throughout territories on the continent. Types of service providers and release windows are also considered, in addition to technological, commercial and legal restraints to the development of the business model. The report also weighs opportunities for digital retail - the potential for shorter form video content, the economics of digital distribution, and Europe's progress in the digital retail of movies in comparison with the USA.
Key findings include:
- Digital retail distribution supplies service providers with an additional revenue stream to supplement flattening revenues in the DVD retail sector and to defend against online and physical movie piracy
- Consumers can now permanently purchase Hollywood movies online in the 'Big Five' European territories, except Italy, and in Austria, Switzerland, the Benelux and Scandinavian regions
- The digital retail of movies is becoming increasingly competitive, with telcos, broadcasters, online rights aggregators, home entertainment retailers and online DVD retailers all offering digital retail movies in Europe
- The most common business model, however, continues to be a la carte digital rental, rather than digital retail
- Broadband speeds and penetration, confusion over new media rights, DRM and interoperability restrictions, the difficulty in moving content from PC to TV, as well as high digital retail price points, are holding back the development of digital retail movies
- Europe could see improved revenues from digital retail movies once consumer burn-to-DVD solutions for major titles and an increased number of digital retail content deals, already in place in the USA, are adopted on the continent.
Table of contents
Digital movie market overview
The status of the European broadband market
The emergence of Internet-delivered digital movies The digital and traditional movie value chains
Online digital movies
Business models: the development of retail
Digital retail models
Competition in the digital retail space: types of service providers
European retail services: Facts and figures
Digital retail in numbers
Retail services and territory overviews Glowria
TF1 Pixbox
Mediaxpress Cine Tiscali
Lovefilm and AOL Film Downloads
Wippit
BT Vision Download Store - Germany, Austria & German-speaking Switzerland
In2movies- Benelux: Netherlands & Flemish-speaking Belgium
Free Record Shop
Keeno - Scandinavia: Sweden, Norway, Finland
Film2home
Worldwide
Cinemanow
World Cinema Online
Hindrances to digital retail
Broadband limitations
Negotiating new media rights
Controlling content consumption:
DRM and interoperability
Getting content to the TV DVD and digital retail pricing
Opportunities for digital retail
The support of the Hollywood majors: DRM and burn-to-DVD solutions
The economics of digital retail distribution
Short-form content
A comparison between USA and Europe
Table and charts
Digital movie market overview
European broadband penetration
European broadband connected households 2006
Digital and traditional movie value chain
Online digital movies
Gross studio-level movie revenues per new release transaction:UK example (€)
Western Europe number of online movie deals by business model
Western Europe share of online movie retail revenues in 2006
European retail services: Facts and figures
Hollywood major digital retail deals with
European platforms
Western Europe annual a la carte online movie rental and retail transactions
Western Europe: online platforms offering
Hollywood titles on a retail basis
Download time for different file sizes in hours:mins:secs
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