STREAMING VIDEO WARS
FEBRUARY 2020PRESENTED BY TIM ANNONI
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Research set-up & objectives
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A GROUPM PROPRIETARY SOLUTION TO UNDERSTAND RELEVANT MARKET DYNAMICS
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SET-UP OF THE RESEARCH
CAWI interviews with high quality standards on data collection
Solid sample size of 700 people for thorough in-depth analysis
Representative for the Belgian population 18-59
Strict weighting procedures (language, gender, age, region, social groups & education level)
Two interview waves to understand market dynamics: March 2020 (just before COVID-19) December 2020 (2nd Lock down)
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1. Could we speak about a COVID-19 effect on the (paid) streaming video behaviour of the
Belgian population?
2. What market dynamics can be observed due to the new competition (paid): who are the
winners and the losers ?
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TWO KEY RESEARCH OBJECTIVES
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DETAILED RESULT OVERVIEW
General trend in the streaming world
Awareness of streaming and VOD services
Success free versus paid services
Subscription battle of different actors
Loyalty analysis
Future market potential
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Results and key learnings
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A GROUPM PROPRIETARY SOLUTION TO UNDERSTAND RELEVANT MARKET DYNAMICS
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STREAMING VIDEOON THE RISEThe paid streaming services boom
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March ‘20 December ‘20
53.5% 57.6%Amount of people with at least one subscription
7.7%Relative increase
STREAMING SUBSCRIPTION BASE INCREASES WITH 8%58% OF BELGIANS NOW HAVE AT LEAST ONE PAID STREAMING SUBSCRIPTION
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INCREASED FAMILIARITY FOR PAID STREAMING PLATFORMS
Paid services slowly close awareness gap with free services
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5.324.80
5.335.64
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Free streaming platforms Paid streaming platforms
Average amount of platforms people are aware of
March '20 December '20
2.91
1.38
2.81
1.64
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Free streaming platforms Paid streaming platforms
March '20 December '20
Average amount of platforms people are familiar with
INTEREST IN PAID SERVICES IS ON THE RISE
AVERAGE NUMBER OF PAID PLATFORMS KNOWN INCREASES
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74%
53%46%
53%46%
38%
56%
38%30%
7%16%
8%
54%
16% 18%12% 12%
21% 17% 16%8%
94%88%
84% 84% 84% 84% 83% 82% 80%
52%
44%
32%
90%
77%72%
65% 64% 64% 63%58% 57%
22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Awareness - Familiarity (December ’20)
Familiarity Awareness
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FREE SERVICES BEST KNOWN, BUT PAID SERVICES SLOWLY CLOSE THE GAP
NEWCOMERS CONQUER SHARE OF MIND BUT STILL MISS FAMILIARITY
*Data is only based on numbers from the region where the platform is active (National or Regional)
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-15%
-10%
-5%
0%
5%
10%
15%
Change in awareness and familiarity (March vs. December ’20)
Awareness Familiarity
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STREAMZ AND DISNEY+ STRONGEST AWARENESS INCREASELAUNCH OF NEW PAID SERVICES CAUGHT THE ATTENTION
*Data is only based on numbers from the region where the platform is active (National or Regional)
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PAID NEWCOMERS GAIN GROUNDFREE VERSUS PAIDSWITCH
Streamz and Disney+ leave their markAmazon Prime also grows in their slipstream
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0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Viewership last 2 months per platform
March '20 December '20
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NEW PAID STREAMING SERVICES ATTRACT NEW VIEWERS
STREAMING CONSUMPTION SHIFTS CAUSED BY THE PAID NEWCOMERS
*Q: Which of the following video streaming services, either free or paying, did you watch in the last 2 months?** Data is only based on numbers from the region where the platform is active (National or Regional)
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March ‘20 December ‘20
76,9%
50,9%
68,2%
54,9%
Free servicesViewership last 2 months
Paid services Viewership last 2 months
-11.3%Relative decrease
7.9%Relative increase
THE PAID SERVICES WIN TO THE DETRIMENT OF FREE SERVICESSHIFT IN VIEWERSHIP PATTERN ACROSS THE STREAMING LANDSCAPE
*Q: Which of the following video streaming services, either free or paying, have you watched in the last 2 months?
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THE SUBSCRIPTION BATTLE WINNERS AND LOSERS
The newcomers live up to their promise
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43%
10%9%
6%
2% 2% 1% 1%
44%
9%11% 10% 11%
3%4% 3%
1%
7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Netflix Proximus payingservices (TV Replay
etc.)
Telenet payingservices (Play etc.)
Amazon Prime Disney+ Be à la demande Apple TV+ Youtube Premium Hulu Streamz
Subscriptions % per platform
March '20 December '20
3%
7%
13%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Netflix Proximus payingservices (TV Replay
etc.)
Telenet payingservices (Play etc.)
Amazon Prime Disney+ Be à la demande Apple TV+ Youtube Premium Hulu Streamz
Subscriptions % per platform
March '20 December '2017
NETFLIX STAYS DOMINANT PLAYER IN THE PAID ARENA
NEWCOMERS PASS THE 10% BAR; MOST OF THE REST IN SLIPSTREAM
*Dotted line indicates subscriptions based on active region only (National or Regional)
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Subscription intentions (March ’20) Actual subscriptions (December ’20)
18%*
DECLARED INTEREST FOR STREAMZ BECOMES A REALITYMEASURED INTEREST IN MARCH FOR STREAMZ CLOSE TO CURRENT SUCCES
0.9%
21.9%
Yes, definitely Yes, I believe soNo, I don't believe so Definitely not
23%80%
conversion
In March ‘20 people were asked about potentially
subscribing to Streamz based on a concept description, but
without price mention.
18% represents the amount of people who have subscribed out of all the people that know the platform.
The current penetration for Streamz is 13% in active zone but only 72% know Streamz for the moment.
*Only based on people who are aware on the platform
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Netflix
Amazon Prime
Apple TV+
Disney+
Hulu Youtube Premium
Telenet
Proximus
Be à la demande
Streamz
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%
Performance based on Awareness (December ‘20)
Awareness
Subs
crip
tions
%
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DISNEY+ AND YOUTUBE ROARING NAMES MUCH BROADER THAN PAID STREAMING CONNOTATION
NETFLIX, PXM & AMAZON CONVERT BEST AWARENESS TO SUBSCRIPTIONS
*Data is only based on numbers from the region where the platform is active (National or Regional)
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MULTI SUBSCRIPTION THE CONSUMER TRAP
Number of subscriptions is increasing due to fragmentation of ‘offering’
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69.9%
30.1%
55.9%
44.1%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
1 Subscription More than 1 subscription
Amount of subscriptions
March '20 December '20
70%
25%3%
2%
56%
27%
11%6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
1 Subscription 2 Subscriptions 3 Subscriptions 4+ Subscriptions
Amount of subscriptions
March November
AVERAGE NUMBER OF SUBSCRIPTIONS IS CLEARLY INCREASINGFRAGMENTATION OF OFFER PUSHES NUMBER OF SUBSCRIPTIONS
Avr. # subscriptions
March 1,4
Avr. # subscriptions
December 1,8
14%With only one
subscription take on at least another one
*Only accounts people who are subscribed to at least one streaming platform
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13%
1%
3%
4%
7%
11%
10%
9%
11%
44%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Streamz
Hulu
Youtube Premium
Apple TV+
Be à la demande
Disney+
Amazon Prime
Telenet paying services (Play etc.)
Proximus paying services (TV Replay etc.)
Netflix
Current Subscriptions (December ’20)
AVERAGE (MATHEMATICAL) OF 3,2 DAYS PER WEEK VIEWING FOR PAID STREAMING PLATFORMS
STREAMZ & AMAZON PRIME UNDERPERFORM IN VIEWING FREQUENCY
*Q: How often do you watch television via video streaming (website or app) or via VOD (viewing on demand)?** Data is only based on numbers from the region where the platform is active (National or Regional)
3.8
3.2
3.1
2.2
3.7
2.4
3.9
4.1
2.6
3.3
Average days perweek viewed
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A LOYALTY AFFAIRWINNING THE HEARTS
Are catalogues of streaming services interesting enough to retain customers?
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84% 82%77%
68%
87%90%
80%86%
81%89%
84% 87%
70% 68%
82%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Netflix Proximus payingservices (TV Replay
etc.)
Telenet paying services(Play etc.)
Amazon Prime Disney+ Be à la demande Apple TV+ Streamz
Customer loyalty among different streaming platforms
March '20 December '20
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44% 9% 11% 10% 11% 7% 4% 13%# of Subscribers
AVERAGE LOYALTY REACHES 83%SUCCESSFUL PAID STREAMING SERVICES INCREASE THEIR LOYALTY
*Q: For which of the following streaming platforms do you consider ending your subscription within the next 6 months?**Only contains people who are currently subscribed
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A HARSH BATTLE IN A GROWING MARKET
The paid streaming market still has a big growth potential, but the cards are not played yet
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10%
2%
3%
6%
10%
8%
9%
8%
40%
3%
2%
2%
4%
10%
3%
6%
5%
4%
13%
6%
6%
5%
12%
50%
18%
57%
48%
53%
53%
42%
47%
49%
34%
28%
78%
35%
43%
36%
23%
42%
36%
37%
10%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Streamz
Hulu
Youtube Premium
Apple TV+
Be à la demande
Disney+
Amazon Prime
Telenet
Proximus
Netflix
December '20
Loyal Potentially Lost Recruit Beyond Range Unaware
56%
14%
17%
24%
16%
11%
9%
9%
4%
23%
Potential Subscribers
WILL CHURN INCREASE OR WILL AVR. NUMBER OF SUBSCRIPTIONS GROW
NETFLIX STAYS DOMINANT BUT NEWCOMERS CHALLENGE POSITION
*Data is only based on numbers from the region where the platform is active (National or Regional)
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Netflix
Amazon Prime
Apple TV+
Disney+
Hulu
YouTube PremiumTelenet
Proximus
Be à la demande
Streamz
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
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Non-subscribers
Futu
rein
tent
ion
Future intention of non-subscribers (December ’20)
RECRUITMENT POTENTIAL AMONG NON-SUBSCRIBERS (MATH) AVERAGES 7%
NETFLIX, DISNEY+ AND STREAMZ TOP LISTED IN EVOKED SET
Math avr. 7%
*Q: For which of the following streaming services would you consider subscribing in the future?*Data is only based on numbers from the region where the platform is active (National or Regional)
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2%1% 1%
2%1% 1%
11%
5%5% 5%
11%
3% 4%5%
3%
9%
0%
2%
4%
6%
8%
10%
12%
14%
Netflix Proximus payingservices (TV Replay
etc.)
Telenet payingservices (Play etc.)
Amazon Prime Disney+ Be à la demande Apple TV+ Youtube Premium Hulu Streamz
Intentions per platform (December ’20)
Sure Possibly
CURRENT TOP 3 IN POLE POSITION BUT STILL HUGE % UNDECIDEDTHE GROSS PENETRATION OF POTENTIAL SUBSCRIPTIONS EQUALS 69%
85% undecided
(possibly versus total)
Gross # potential
subscriptions 69%
*Q: For which of the following streaming services would you consider subscribing in the future?*Data is only based on numbers from the region where the platform is active (National or Regional)
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57.6%
9.3%
33.1%
Net potential subscriptions (December ’20)
Current subscribers Potential new subscribers Non-subscribers
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66.9%
THE SUBSCRIPTION MARKET WILL GROW WITH 17%MARKET POTENTIAL OF SUBSCRIBERS ESTIMATED AT 67%
# Net potential subscribers
Belgium66.9%
Net subscribers’ growth is 17%, or 9 percent points increase compared to current situation, this is 58% current subscribers
Gross subscriptions’ estimated growth of 48% confirming the high undecided percentage (85%) and thus harsh battle for the viewer
Based on a current average subscription level of 1.8/HH we estimate a conversion of only 60% of the potential subscriptions increase (69% gross subscriptions)
+17% increase subscribers
+48% potential increase subscriptions
60% estimated conversion
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MAIN TAKE OUTSOF THIS SURVEY
In the end the consumer has the final decisionWill the local offer be able to compete with the global players?
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CONCLUSIONS
Paid streaming subscriptions on the rise 12
3
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58% of Belgians 18-59 declare having a subscription with a paid streaming platform; a rise of 8% December compared to March.
Shift in streaming consumptionResults show, to a certain degree, a shift from free streaming services to the subscription-based services between March andDecember 2020. Paid streaming viewership increases with 8% and free streaming viewership decreases with 11%.
Newcomers do not miss their entranceStreamz and Disney+ pass the bar of 10% subscriptions with respectively 13% (on active region) and 11% with most of the otherpaid platforms in their slipstream. A battle between Proximus and Telenet becomes visible.
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Paid platforms increased awarenessNewcomers conquer share of mind, but still miss familiarity. Disney+ and Streamz pass the 70% awareness bar, but stay underthe 20% familiarity score.
5Multi subscription evolution
6Paid streaming market is booming
The average number of subscriptions is rising from 1.4 to 1.8. Platform loyalty is 83%. Streamz and Amazon prime still have somecatching up to do on weekly viewing frequency. They underperform, with resp. 2.6 and 2.2 days per week viewing, whilst theaverage is 3.2.
The subscription market will grow with 9 % points, bringing the total percentage of subscribers to 67%. Netflix, Disney+ andStreamz are in pole position to recruit (resp. 13%, 12% and 10%). More than 85% is still undecided. We calculated that only 60%of the potential subscriptions (intention to eventually take a subscription in the future) will be really converted.
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