Netflix, Sky Europe’s biggest TV company, controls 35% of the SVOD market – The Hollywood Reporter

Sky, owned by Comcast, is Europe’s largest television company by revenue, reaching $18.6 billion (€16.3 billion) in 2020, up from $7.0 billion (6.15 billion euros) for Netflix’s European operations, making the streamer the third largest television group on the continent, according to a new report published on Tuesday.

The German public broadcaster ARD, with 7.45 billion dollars (6.53 billion euros) in revenue, most of which comes from the national tax on television, is the number 2 in Europe.

But Netflix is ​​the undisputed champion of European subscription VOD, with a 35% market share, according to industry think tank European Audiovisual Observatory (EAO) in its latest study of 40 European countries. Netflix’s closest streaming competitor in Europe, Amazon Prime Video, held 20.4% of the SVOD market, according to the report, and generated revenues of “just” $1.98 billion ($1.74 billion). billion euros).

The study, which looked at the development of the European TV industry from 2016 to 2020, found that revenue growth across the sector, at 7.7% over the four-year period, was slightly better than inflation and the overall market. But more than 75% of that growth came from SVOD-only gamers, primarily Netflix, Amazon, and sports streamer DAZN.

Overall, the study estimates that Netflix had 62.4 million European subscribers at the end of 2020, compared to 36.5 million for Amazon Prime Video, 15.1 million for AppleTV+ and 14.6 million for Disney+, which does not was only launched in select European territories in Spring 2020.

Breaking down the figures by ownership, the study found that US companies, including Sky, Netflix and Amazon, accounted for 30% of total European revenue, with 69% coming from European companies. Just over a third (31%) of TV revenue in Europe in 2020 came from public broadcasters, including 69% from commercial networks and streamers.

The report revealed significant concentration in the media sector in Europe, which the EAO said was exacerbated by the COVID-19 pandemic. The top 20 European TV companies accounted for 69% of total industry revenue in 2020, with the top five companies accounting for 33%. The streaming market was even more concentrated, with the top five players (Netflix, Amazon, Disney and Russian streamer Kinopoisk) accounting for 75% of all SVOD subscriptions in Europe, and the top 20 94%.

Highlighting recent mergers and acquisitions in Europe, including Disney’s acquisition of the European operations of Fox International Channels as part of the takeover of 20th Century Fox, and Vodafone’s takeover of the UPC operations in Europe of Liberty Global, the EAO said the strategic rationale for M&A deals varied significantly, from companies looking to gain scale to acquire more premium content at competitive prices to platforms simply looking to expand into new territories.

Mary I. Bruner