U.K., France Lead Euro OTT Deployments

MONTEREY: The market for over-the-top (OTT) video services in Europe is being driven by rollouts in the U.K. and France, SNL Kagan reports in a new study.

The study focused on France, Germany, Italy, the U.K. and Spain and found an increase in OTT service launches in recent months, thanks to channels’ catch-up services. SNL Kagan notes the emergence of umbrella initiatives like Project Canvas (YouView) in the U.K., MHP in Italy and HbbTV (Hybrid Broadcast Broadband TV) in Germany and France. In addition, authenticated TV Everywhere is expected to see a boost thanks to strong take-up of double- and triple-play bundles. Moreover, consumer-electronics manufacturers are rolling out connected TVs, which will also drive growth of the OTT market.

SNL Kagan also points out that there are significant market variations in OTT viability across Europe. Italy and Spain have more limited mass-market penetration of VOD, catch-up and PC TV services. In Spain, however, high broadband penetration combined with pricey pay-TV packages is creating a gap that OTT could fill. In Italy, while new players may encounter barriers to entry, incumbents such as Mediaset are poised to drive the OTT market. Meanwhile, pay-TV providers region-wide are exploring TV Everywhere deployments to secure a foothold in the OTT market.

"Multiplatform video continues to gain momentum, as operators and broadcasters take the lead role with their own VOD, live and catch-up TV services, while also pursuing a TV Everywhere strategy," said Mohammed Hamza, media and communications analyst at SNL Kagan. “However, sites of OTT gravity are also forming around new players in Europe, as entities including LoveFilm work to align content, distribution, brand and business model into sustaining businesses. Signs of traction are drawing the attention of global giants, with Amazon taking full ownership of LoveFilm in January, giving the retail behemoth a VOD presence in the U.K., Germany, Denmark, Norway and Sweden."