FRANCE DIGITAL VIDEO 2019 - Subscription OTT Drives Digital Video Growth SEPTEMBER 2019 - TVSquared
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FRANCE DIGITAL VIDEO 2019 Subscription OTT Drives Digital Video Growth SEPTEMBER 2019 Bill Fisher & Alina Brentnall Contributors: Ross Benes, Paul Verna, Karin von Abrams, Angela Kim, Jennifer Jhun
FRANCE DIGITAL VIDEO 2019: SUBSCRIPTION OTT DRIVES DIGITAL
VIDEO GROWTH
The digital video market in France is growing despite being behind Europe and far behind the UK. We forecast
that over 57% of the population in France will watch digital video in 2019. Digital video viewer growth is driven by
subscription video-on-demand adoption (SVOD).
How many digital video viewers are there in France?
In France, there will be more than 38 million digital video
viewers in 2019. This number will climb to more than
41 million by 2022, resulting in over 60% of the
population watching digital video.
Which devices are video viewers in France using?
While TV use for video watching is still going strong, in
2019, more than 25 million people in France will watch
digital video on their mobile phone, which is more than
one-third of the population. By 2022, France will add
another 2 million mobile phone video viewers. Devices
used will depend on the digital video content watched.
How many subscription OTT video viewers does
France have?
In 2019, 21 million people in France will use subscription
over-the-top (OTT) video services. This number is
expected to increase to more than 25 million by 2022,
resulting in more than one-third of the population using KEY STAT: In 2019, 38.6 million people in France, or
subscription OTT video services, with over 72% of 57.4% of the population, will watch digital video. By
subscription OTT video viewers using Netflix. 2022, that figure will climb to 41.3 million digital video
viewers, or 60.9% of the population and three-quarters of
What’s driving video growth in France? internet users.
Digital video is driven chiefly by global players, such as
YouTube and Netflix. But local players and broadcasters
introducing over-the-top (OTT) services are gaining
importance in the market. Consumers in large part still CONTENTS
watch free-to-air TV, but pay TV and other digital video
services are increasingly used as well. Overall digital 2 France Digital Video 2019: Subscription OTT Drives Digital
video viewer numbers are driven mainly by Netflix, which Video Growth
increased viewers by over 97% in 2018. 4 Overview of Our Digital Video Viewer Numbers for France
WHAT’S IN THIS REPORT? This report examines the digital 6 What’s Driving Video Trends in France
video and TV market in France, based on our most recent 13 Key Takeaways
digital video viewer forecasts. It looks at who’s watching,
14 eMarketer Interviews
how and where they’re watching and what it all means
for marketers. 14 Read Next
14 Sources
14 Editorial and Production Contributors
FRANCE DIGITAL VIDEO 2019: SUBSCRIPTION OTT DRIVES DIGITAL VIDEO GROWTH ©2019 EMARKETER INC. ALL RIGHTS RESERVED 2
Behind the Numbers Linear OTT: An OTT service that delivers content from
multiple TV, cable or satellite channels in real time. Also
The methodology for our France digital video viewer and
referred to as a virtual multichannel video programming
over-the-top (OTT) subscription video user forecast is
distributor (vMVPD) or skinny bundle.
based on an analysis of 294 metrics from 47 sources. This
analysis involves the collection of data from third-party Linear TV: Television programming distributed through
research sources, online and mobile video activity tracking cable, satellite or broadcast networks; includes VOD.
services, data as reported by major digital video and OTT Multichannel video programming distributor (MVPD): A
video companies, and industry sources. service provider that delivers programming over cable,
We also incorporate relevant consumer viewing trends and satellite, or wireline or wireless networks.
device adoption, which play a large role in the uptake of Over-the-top (OTT): Any app or website that provides
digital video and OTT video subscriptions. These forecasts streaming video content over the internet and bypasses
are updated on an annual basis in order to continually traditional distribution; examples include HBO Now, Hulu,
incorporate the latest changes and developments in Netflix and YouTube. Traditional distribution includes
the market. internet protocol TV (IPTV), cable, satellite, wireless carriers
and fiber operators, multiple system operators (MSOs),
MVPDs, and major TV broadcast and cable networks.
Our complete estimates for digital video in France can be
found in this report’s accompanying spreadsheet. Pay TV: A service that requires a subscription to a
traditional pay TV provider; excludes IPTV and pure-play
digital video services (e.g., Hulu, Netflix, YouTube, Sling TV,
Glossary etc.). Traditional pay TV providers include cable, satellite,
Addressable TV: Targeted TV ads delivered on a telco and fiber operators, MSOs, MVPDs, and major TV
home-by-home basis via cable, satellite and telco boxes. broadcast and cable networks.
It includes both linear and video-on-demand (VOD) Programmatic: Ads transacted via an application
delivered in this way, but excludes connected TV, smart TV program interface (API), including everything from
and OTT. publisher-erected APIs to more standardized real-time
Ad-supported video-on-demand (AVOD): These services bidding (RTB) technology.
include free platforms like YouTube as well as those, Programmatic TV: The use of software platforms to
like Hulu, that charge a subscription fee in addition to automate the buying or selling of TV advertising distributed
serving ads. through cable, satellite or broadcast networks
Advanced TV: Television paired with technology that allows Smart TV: A TV with built-in internet capability.
for new features, components or uses. Addressable,
Subscription video-on-demand (SVOD): Defined by
programmatic, OTT and interactive are all subsets of
Technopedia as “a service that gives users unlimited
advanced TV.
access to a wide range of programs for a monthly flat rate.”
Connected TV: A TV set connected to the internet through
TV Everywhere (TVE): A streaming service operated by
built-in internet capability or through another device such
a TV, cable or satellite network—or by an MVPD—that
as a Blu-ray player, game console or set-top box (e.g.,
requires users to authenticate their pay TV subscriptions in
Apple TV, Google Chromecast, Roku).
order to access the content.
Cord-cutter: Someone who once had but then canceled a
Upfront: Digital video ad spending committed in advance,
pay TV service.
including spending resulting from the TV upfronts events,
Cord-never: Someone who never subscribed to pay TV in the Interactive Advertising Bureau (IAB) Digital Content
the first place. NewFronts, and other meetings throughout the year.
Cord-trimmer: Someone who cut back on their pay TV Virtual multichannel video programming distributor
service level but still subscribes. (vMVPD): An MVPD that delivers service via the internet;
Esports: Organized gaming competitions among interchangeable with “linear OTT.”
professional players and teams.
FRANCE DIGITAL VIDEO 2019: SUBSCRIPTION OTT DRIVES DIGITAL VIDEO GROWTH ©2019 EMARKETER INC. ALL RIGHTS RESERVED 3
OVERVIEW OF OUR DIGITAL VIDEO
VIEWER NUMBERS FOR FRANCE
France, like Germany, has lagged behind some of its
neighboring countries in digital video viewership.
DIGITAL VIDEO VIEWERS
This year, the number of digital video viewers in France
will reach 38.6 million, representing 57.4% of the
country’s population. This figure places France on par with
Germany (58.1%), but below the Western Europe average
(59.2%) and well behind the UK (68.3%). With a younger
population, however, France will outpace Germany
slightly throughout the forecast, and by 2022, 60.9% of
France’s population will be digital video viewers vs. 60.7%
for Germany.
MOBILE VIDEO VIEWERS
As per the overall digital total, the number of mobile
phone video viewers in France continues to grow, but
penetration rates still lag behind other developed nations.
This year, 37.4% of the population will watch video via
a mobile phone. And that figure is expected to remain
well below half of France’s population throughout the
forecast period.
Teens and young millennials make up the lion’s share of Younger consumers will drive mobile phone video
digital video watching by a wide margin. This year, 92.7% viewership growth in France. This year, 81.0% of 18- to
of 18- to 24-year-olds in France will watch digital video at 24-year-olds will be mobile phone video viewers.
least monthly. Among those ages 12 to 17, that figure is Proportions will stand at just below 70% among those
87.6%. Age groups that are more entrenched in traditional ages 12 to 17 and 25 to 34. By comparison, among those
consumption habits are unsurprisingly less likely to watch ages 65 and older, just 8.6% will consume video on
digital video. mobile phones.
FRANCE DIGITAL VIDEO 2019: SUBSCRIPTION OTT DRIVES DIGITAL VIDEO GROWTH ©2019 EMARKETER INC. ALL RIGHTS RESERVED 4
SUBSCRIPTION OVER-THE-TOP (OTT) YouTube’s penetration, meanwhile, has been diluted by
this strong growth in subscription OTT. This year, 92.7%
VIDEO VIEWERS of digital video viewers will watch YouTube content. By
2022, that will have dropped slightly to 91.6%. However,
This year, there will be 21.0 million subscription OTT the platform remains near-ubiquitous, accounting for more
video viewers in France, making up 54.2% of the digital than half the population and adding viewers throughout
video viewer base; by 2022, those figures will rise to our forecast.
25.2 million and 61.1%.
TIME SPENT WITH DIGITAL VIDEO
While time spent with digital video is expected to replace
traditional TV, the degree of replacement won’t be enough
Select OTT Platform Users to substantially close the gap.
Netflix is clearly fueling this rise in subscription OTT
video viewers. This year, substantial growth of 33.3% Time spent with TV is falling, of course. Adults in France
means that Netflix subscribers will make up 72.1% of spent 3 hours, 46 minutes with the medium in 2017;
subscription OTT video viewers, and that proportion will by 2019, this will have fallen to 3 hours, 35 minutes. By
remain steady—growing slightly to 72.7% by 2022. 2021, that figure will stand at 3 hours, 27 minutes. So
overall, time spent with traditional TV in France will drop
by 19 minutes between 2017 and 2021.
The digital video gain, however, will be only slightly higher
than that—from 40 minutes in 2017 to 1 hour, 3 minutes
by 2021, equating to 23 minutes. Overall, video viewing is
posting gains, but digital video will remain well below TV’s
total for some time.
FRANCE DIGITAL VIDEO 2019: SUBSCRIPTION OTT DRIVES DIGITAL VIDEO GROWTH ©2019 EMARKETER INC. ALL RIGHTS RESERVED 5
WHAT’S DRIVING VIDEO TRENDS
IN FRANCE
MARKET OVERVIEW
The digital video market in France is shaped by a variety
of services and providers, ranging from global players,
like Netflix and Amazon Prime Video, to local players and
pay TV providers, like Orange and Canal+. While France
has been slower than its neighbors in adopting digital
video services, the digital video market has boomed in
recent years. New global players have entered—and
still plan to enter—the market, and established pay TV
providers adapted by offering their services on-demand
and developing their own streaming services. In addition,
smaller local players, like France Télévisions and Arte, are
introducing their own services, creating a large variety of
digital video options.
SELECT OTT SERVICES IN FRANCE, AUGUST 2019
Service Owner Monthly Cost (1) Revenue Model Subscribers Content/Description
Amazon Amazon No additional cost with Subscription video-on-demand 1.1 million (2016) Movies and TV series, including original content
Prime Video Prime membership, (SVOD)
which is €5.99 ($7.07)
Canal+ Vivendi €6.99-€49.90 SVOD with ads 7.727 million Varies by subscription; live TV, original content,
($8.25-$58.88) (March 2019) (2) TV shows and series, movies, sports,
documentaries
Netflix Netflix €7.99-€15.99 SVOD Subscribers: 5 million Original content, TV shows and series, movies,
($9.43-$18.87) (Feb 2019); estimated documentaries
monthly viewers in 2019:
15.1 million
OCS Orange €9.99-€11.99 SVOD; ads for own programs 3 million (Jan 2019) TV shows and series, movies; offers live and
($11.79-$14.15) offline
YouTube Google Free or €11.99 Ad-based video-on-demand Estimated monthly Live TV, original content, TV shows and series,
($14.15) for Premium (AVOD), SVOD viewers in 2019: movies, sports and more
35.8 million
Molotov.tv Molotov Free or €3.99 ($4.71) AVOD, SVOD 2 million active users Live and replay TV for over 36 channels
(Jan 2018)
Note: All services are available on iOS, Android and other connected devices; cost conversions calculated using $1=€0.847471 exchange rate; (1)
cost does not take into account trial periods, introductory offers, special promotions, or pricing plans for longer than one month; (2) includes pay TV
and OTT users.
Source: Pricing information for Amazon, Netflix, OCS, Canal+, YouTube and Molotov.tv as cited on respective company websites; Netflix and YouTube
viewer information based on eMarketer forecast, Aug 2019; Amazon subscriber information from Ofcom, Dec 18, 2018; Canal+ subscriber informa-
tion from Canal+ as cited by Phonandroid, April 16, 2019; Orange information from Orange as cited by Variety, Jan 31, 2019; Molotov.tv user
information from Molotov as cited by Broadband TV News, Jan 30, 2018.
FRANCE DIGITAL VIDEO 2019: SUBSCRIPTION OTT DRIVES DIGITAL VIDEO GROWTH ©2019 EMARKETER INC. ALL RIGHTS RESERVED 6
Global Streaming Services Lead the Market French telecom Orange offers a wide range of video
services including free channels, pay TV and VOD. OCS,
YouTube launched in France in 2007 and is the most one of Orange’s streaming offerings, was launched more
popular digital video platform in the country. We estimate than a decade ago. Its content includes US-based HBO
it will have 35.8 million viewers this year, representing and movies and series from other providers. Orange has
92.7% of digital video viewers. One reason for this also invested in local and original content.
ubiquity is the platform’s broad coverage—it offers video
content from content creators, live TV, original content, TV Besides the main providers and broadcasters, a wide
shows, TV series, movies and sports. Its main offering is variety of local players, including francetv, MyTF1,
also free, of course. Arte SRF, Filmo TV and French video-sharing platform
Dailymotion, are in the mix.
Netflix, having launched in France in 2014, is the most
popular SVOD platform in the country. By the end New players are also planning to enter the market. For
of 2018, Netflix was responsible for 23% of internet example, TV5 Monde plans to launch a new VOD service
traffic in France, according to Autorité de régulation next year, and France Télévisions, Arte, ARD and ZDF
des communications électroniques et des postes plan to establish such a service, though a timeline hasn’t
(ARCEP). The SVOD service has increasingly invested been announced.
in local language content, including producing original
programming in French and collaborating with local Other global competitors planning to enter the market
industry to meet the European content quota. This include Apple TV+ (launching this year), Disney+ and HBO
quota, which goes into effect September 2020, requires Max (2020) and IMDb TV (later this year).
video-streaming companies in the EU to ensure that 30%
of their offering is made up of European content. While In response to increased competition from global and
clarifications on that are still to come, many providers, local competitors in the OTT markets, and the resulting
including Netflix and Prime Video, along with other local disruption to the existing pay TV marketplace, pay TV
providers, are already investing in creating local, original providers have responded by offering their own OTT
content. Netflix is currently working on 20 original shows services, sometimes as a standalone subscription
for the market. streaming service. According to NPA Conseil as cited by
Advanced Television, 23.4% of pay TV channels (over 50%
Launched at the end of 2016, Prime Video has acquired if aggregation platforms such as MyCanal and Molotov
more than 40 premium French TV series and films, and are included) are available as OTT apps.
invests heavily to acquire local shows and movies and
partner with content creators in France. “TV is now a connected platform that is frequently
watched on the move—across Europe, the US and
Molotov.tv—another local player established in 2016—is beyond, viewers are no longer confined to their living
a content aggregation platform offering live and replay rooms,” said Blair Robertson, CTO at TV advertising
of live TV from more than 36 channels. On this platform, attribution specialist TVSquared. “Broadcasters are
ads are shown similarly to ad-supported broadcast adapting to this behavior and considering how to develop
TV channels. their own broadcast video-on-demand [BVOD] offering. In
France, this is already a reality.”
Broadcasters Adapt to Compete Many broadcasters and pay TV providers invest heavily in
Pay TV provider Canal+ has made several attempts original content. According to Ampere Analysis as cited by
to compete with Netflix. Its standalone OTT service Mediaplaynews, the top broadcasters in France (France
CanalPlay was shut down in 2018 due to falling subscriber Télévisions, Canal+, TF1, M6 and Orange) spent more
numbers and issues with regulations and streaming than €5.4 billion ($6.1 billion) on content last year, with
rights. Canal+ has since introduced a new streaming 40% going towards on original programming.
service this year, Canal+ Series, which focuses on
offering only TV series.
FRANCE DIGITAL VIDEO 2019: SUBSCRIPTION OTT DRIVES DIGITAL VIDEO GROWTH ©2019 EMARKETER INC. ALL RIGHTS RESERVED 7
To compete with global players, several broadcasters also While content-sharing platforms and streamed TV remain
want to join forces to create bigger platforms with wider more popular than VOD, this type of service is seeing
reach within France. Salto, a new joint venture streaming much stronger growth, especially SVOD. YouTube has
platform by TF1, France Télévisions and M6 groups, is also been viewed by the majority of internet users in France
in development with a launch date sometime in Q1 2020. for years and as our forecast shows, its growth is now
The platform aims to compete with rivals by offering a slowing down, in contrast to the VOD user penetration.
variety of content, including news, sports, entertainment,
drama, free channels, TV shows and films as well as up The rise in SVOD user numbers leads to increased
to 40% exclusive content from broadcasters, especially household spending on these services. Last year, total
French and European produced content. consumer spending on pay TV services was still much
higher than spending on VOD, but it’s decreasing—while
“There has to be that level of consolidation between VOD spending has risen strongly in 2018 compared with
content holders”, said Thomas Bremond, general manager 2017, according to a study by Centre national du cinéma
of the international division at FreeWheel, referring to the et de l’image animée (CNC), GfK, Harris Interactive, Idate
Salto venture. “The future [is] clearly one of consolidation and Vertigo.
of various premium broadcaster platforms because they
know they need scale in order to compete with some of The subscription model for VOD is driving this increase.
these other subscriber-funded platforms.” As of 2018, subscriptions already accounted for nearly
68% of consumer spending on VOD in France. According
to CNC, GfK and NPA Conseil, the value of one-time
CONSUMER HABITS payments for video content started to decrease in 2018
after years of stagnation, while SVOD spending more
What Consumers Are Watching: SVOD Adoption than doubled between 2016 and 2018. In 2018 alone,
SVOD spending increased by over 80% vs. 2017 to
Is Skyrocketing €455.0 million ($537 million), showing that consumers
in France are becoming more comfortable with the
According to a Eurostat study, 51% of digital video
SVOD model.
viewers in France viewed content-sharing platforms
such as YouTube in 2018, 15 percentage points more
than the share who viewed internet-streamed TV from Video-on-Demand (VOD) Spending in France, by
Transaction Type, 2014-2018
broadcasters. A further 23% indicated that they viewed millions of €
VOD from commercial services such as Netflix or HBO— €671.9
though that share was lower than in Germany and the
UK, for example.
€485.1
Digital Video Viewer Penetration in the EU-5, by €455.0
Country and Service Type, 2018 €366.6
% of internet users €317.6 €249.0
€265.0 €131.4
Internet- Video-on-demand Content from €82.5
streamed TV (live or (VOD) from sharing services €29.2
catch-up) from commercial services (e.g., YouTube)
broadcasters (e.g., Netflix, HBO)
UK 64% 53% 71% €235.8 €235.1 €235.2 €236.1 €216.9
Germany 48% 31% 65%
Spain 45% 39% 76% 2014 2015 2016 2017 2018
France 36% 23% 51% One-time payment Subscription video-on-demand (SVOD)
Italy 28% 23% 68%
Note: estimate; includes VAT
Note: ages 16-74 who used the internet in the past 3 months Source: GfK and NPA Conseil as cited in Centre national du cinéma et de
Source: Eurostat, "ICT Usage in Households and by Individuals 2018," Dec l'image animée (CNC), "Bilan 2018," May 6, 2019
20, 2018
247293 www.eMarketer.com
249429 www.eMarketer.com
FRANCE DIGITAL VIDEO 2019: SUBSCRIPTION OTT DRIVES DIGITAL VIDEO GROWTH ©2019 EMARKETER INC. ALL RIGHTS RESERVED 8
Daily SVOD adoption also seems to be picking up. The same study found an increased use of devices other
France had 5.5 million daily SVOD viewers in 2018, than TV. While TV is most popular for SVOD and VOD
which is an increase of 61% in just one year, according among consumers in France, (50% and 41% use a TV,
to Médiamétrie. In fact, 96% of SVOD users used a respectively), 59% (of which 35% use a PC, 20% use a
service daily. smartphone and 10% use a tablet) and 77%, respectively
also use devices other than TV.
This growth in SVOD use is in large part driven by
Netflix—now the leading supplier of paid on-demand The CNC, Harris Interactive and Vertigo study also found
video services in France. According to a study by CNC, that the paid VOD viewer penetration on all devices—
Harris Interactive and Vertigo, 48.0% of internet users including internet protocol TV (IPTV), desktop/laptop and
ages 15 and older said they paid to watch Netflix in mobile—increased slowly but steadily between 2014
2018—more than twice the share who paid for VOD and 2018.
content from Orange. All other players had less than 20%,
including Prime Video. Between 2017 and 2018 alone, Paid Video-on-Demand (VOD) Viewer Penetration in
Netflix recorded an increase in users of more than 15 France, by Device, 2014-2018
percentage points, while most other services (including % of internet users
Orange, MyTF1VOD and CanalPlay) lost paying users. 2014 2015 2016 2017 2018
IPTV 28.6% 28.9% 32.9% 33.0% 34.7%
Desktop/laptop 10.0% 12.1% 13.1% 13.5% 14.6%
Which Video-on-Demand (VOD) Services Do
Video-on-Demand Viewers in France Pay for? Mobile device 5.5% 8.2% 8.6% 9.4% 10.3%
% of respondents, 2018 Total 33.0% 34.4% 37.4% 37.9% 39.3%
Note: ages 15+
Netflix 48.0% Source: CNC, Harris Interactive, Vertigo as cited in Centre national du
cinéma et de l'image animée (CNC), "Bilan 2018," May 6, 2019
Orange 23.6% 247294 www.eMarketer.com
MyTF1 VOD 19.5%
Médiamétrie confirmed that while TV is the most used
Canalplay VOD 14.6% device for SVOD in France, it is not the only one. It
13.4% Amazon Prime Video reported that 38% of SVOD viewers watched video
Arte 12.0% content on their smartphone in January 2019. That
was behind the share who watched on a TV (71%) or
Google Play 11.2%
computer (55%), but substantially ahead of the share
iTunes 11.1%
who watched via tablet (26%).
France.tv 10.5%
Note: ages 15+ Devices Used By Subscription Video-on-Demand
Source: CNC, Harris Interactive, Vertigo as cited in Centre national du (SVOD) Viewers in France to Watch SVOD, Jan 2019
cinéma et de l'image animée (CNC), "Bilan 2018," May 6, 2019
% of respondents
247295 www.eMarketer.com
TV 71%
As noted earlier, the growth of global players—and
the need to compete with Netflix—is also driving Desktop/laptop 55%
consolidation of local platforms in France, such as the Smartphone 38%
planned launch of Salto in 2020. Tablet 26%
Note: ages 6+ who have used SVOD within the past 12 months
Device Trends: Content Type Often Predicates Source: Médiamétrie "Global SVoD" as cited in press release, April 11, 2019
247235 www.eMarketer.com
Device Choice The same study also pointed out that SVOD is
Video viewers in France increasingly use multiple devices increasingly viewed on all screens. Among the 71% of
to consume video content. That said, the devices used SVOD viewers who used a TV in January 2019, only 25%
often vary by video type and demographic. According used it exclusively, and 75% of SVOD viewers used at
to a June 2018 Schole Marketing survey as cited by least one non-TV screen.
Syndicat National de la Publicité TéléVisée (SNPTV), a TV
set is typically used for watching SVOD and VOD, while
alternative devices are favored for streaming and online
video (such as videos on sharing sites or social networks).
FRANCE DIGITAL VIDEO 2019: SUBSCRIPTION OTT DRIVES DIGITAL VIDEO GROWTH ©2019 EMARKETER INC. ALL RIGHTS RESERVED 9
Smartphones are becoming more important for France’s Nevertheless, France still lags in mobile streaming
digital video viewers. Digital TV viewing has shifted adoption, compared with Germany, the Netherlands and
dramatically toward mobile over the years, for example. the UK, according to an October 2018 Penthera and EMI
According to various local sources as cited by CNC, Research Solutions survey. However, 31.0% of internet
22.3% of digital TV was viewed via mobile phone users in France ages 18 to 50 said they streamed shows
and tablet in 2014, but this number had more than or movies on their mobile device daily, and another 30.0%
doubled by 2018, while desktop/laptop and TV shares did so at least weekly. This means that the majority
steadily decreased. of internet users used their mobile device regularly to
stream TV shows or movies.
Digital TV Viewing Share in France, by Device,
2014-2018 How Often Do Internet Users in Select Countries in
% of total Europe Stream TV Shows/Movies on Their Mobile
2014 Devices?
40.1% 37.5% 22.3% % of respondents, by country, Oct 2018
Daily Weekly Monthly Occasionally Don't use
2015
33.3% 35.0% 31.7% France 31.0% 30.0% 4.3% 12.7% 22.0%
Germany 33.0% 27.3% 8.0% 11.3% 20.3%
2016
29.5% 31.6% 38.9% Italy 46.7% 27.7% 1.7% 11.3% 12.7%
Netherlands 34.3% 26.3% 7.0% 15.3% 17.0%
2017
25.6% 29.9% 44.4% Spain 51.0% 23.3% 2.7% 11.3% 11.7%
UK 36.7% 35.0% 6.3% 11.0% 11.0%
2018
Total 38.8% 28.3% 5.0% 12.2% 15.8%
21.3% 29.8% 49.0%
Note: n=1,800 ages 18-50; numbers may not add up to 100% due to
Desktop/laptop TV Mobile phone & tablet rounding
Source: Penthera, "International Mobile Streaming Behavior Survey: Q4
Note: based on number of videos viewed; channels included 1ère, 6ter, 2018" conducted by EMI Research Solutions, Dec 6, 2018
6ter, Canal+, CNews, CStar, France 2, France 3, France 4, France 5, France 244383 www.eMarketer.com
Ô, Gulli, HD1, LCI, M6, NT1, Paris Première, Piwi+, Teva, Télétoon+, TF1, TMC
and W9; numbers may not add up to 100% due to rounding Mobile streaming adoption in France might be lagging
Source: NPA, GfK, Canal+ Régie, France Télévisions Publicité, M6 Publicité
Digital, TF1 Publicité Digital, TMC Régie, Lagardère Publicité as cited in because of several mobile streaming issues. Consumers
Centre national du cinéma et de l'image animée (CNC), "Bilan 2018," May 6,
2019 in France are easily frustrated if streaming via their mobile
247292 www.eMarketer.com devices does not work. Among the main frustrations
“Smartphone adoption rates in France are some of the when streaming from a mobile device were that a video
highest in Europe, primarily due to the role of the telco took too long to start up (cited by 46.3% of internet users
companies,” said Lisa Menaldo, co-founder of growth in France) and buffering issues (47.3%), per Penthera.
strategist firm The Advisory Collective. “Orange is the Advertising was also an issue for 42.0% of respondents.
main provider where cost-effective bundle packages
for consumers are intrinsically linked with internet, What Frustrations Do Internet Users in France and
landline, cable TV and a few OTT services. Orange has Germany Experience When Streaming Mobile Video?
% of respondents, Oct 2018
also invested heavily in rural infrastructure; so streamed
Germany France
services are more accessible to the masses, as opposed
The video buffered, making it hard to enjoy 41.0% 47.3%
to just major conurbations [large urban centers that
The advertisements were annoying 40.0% 42.0%
extend beyond town/city lines].”
The video took too long to start up 38.0% 46.3%
It increased my monthly data costs 12.3% 8.0%
Comscore also confirms this trend. In February 2019, the When I use public Wi-Fi 7.7% 6.0%
unique visitor share for video streaming in France was I have never experienced frustrations when 19.0% 17.0%
35% for mobile. Desktop/laptop was only slightly higher streaming video
with 41% and multiplatform (includes both desktop Other 2.7% 2.0%
Note: n=600 ages 18-50
and mobile) had a share of 24%. In terms of time spent Source: Penthera, "International Mobile Streaming Behavior Survey: Q4
streaming video, desktop/laptop was still ahead with a 2018" conducted by EMI Research Solutions, Dec 6, 2018
66% share; the remaining 34% of time spent streaming 249104 www.eMarketer.com
video in France was via mobile.
FRANCE DIGITAL VIDEO 2019: SUBSCRIPTION OTT DRIVES DIGITAL VIDEO GROWTH ©2019 EMARKETER INC. ALL RIGHTS RESERVED 10“It’s just the balance of conveniences and inconveniences According to Médiamétrie data cited by Syndicat National
on mobile,” said Brian Kline, chief product officer at de la Publicité TéléVisée (SNPTV) in a November 2018
Penthera. “The conveniences are that you can get it survey, the majority (79%) of time with video content
wherever you want. The inconveniences, and you can see among consumers ages 4 and older in France is still spent
it in our survey data, is that a lot of people have issues. directly with live TV. Internet videos have a share of 10%,
Mobile-first is really about the experience that you’re deferred catch-up on TV or other devices have 7% and
willing to deal with, relative to the time and lifestyle VOD has 4%. Among younger age groups (ages 15 to 24),
you live.” live TV claims a 45% share, followed by internet videos
(28%) and VOD (15%). In 2015, TV still garnered a 70%
In response to those video viewing issues, 48.7% of share among the same age group. This shows a clear shift
frustrated internet users in France said they would from traditional TV to VOD and other online video options
typically give up and try again later, and 22.7% would among younger cohorts.
accept that mobile streaming is simply frustrating,
while close to a quarter (23.0%) would stop using the A September 2018 survey by Junior City as cited by
particular service entirely, according to Penthera and EMI SNPTV shows a similar trend. While traditional TV was
Research Solutions. still the most widely viewed type of video content
among children, other viewing options attracted sizable
The top reasons for downloading from a streaming audiences. Eight in 10 children in France ages 4 to 14
service are the ability to watch whenever and wherever watched traditional TV. Content sharing platforms and
they want (44.3%), download from a streaming service short-form video content were also popular, with just over
to not have to worry about using Wi-Fi (25.7%) and to 50% of children polled in France watching YouTube. Just
avoid buffering (24%). In fact, over 57% of respondents more than a quarter of respondents watched Netflix.
said they would be willing to pay more for a download
feature, per Penthera and EMI Research Solutions. Some The partial shift from traditional TV to digital video
21.3% said they would be willing to pay $3 to $4 a month, among different age groups is noticeable when looking
and 29% would pay $1 to $2 a month. This should give at time spent. In Q3 2018, 18- to 24-year-olds in France
video providers an indication of how much they could spent approximately 2.2 hours per day watching VOD; a
ask consumers in France to pay for an enhanced mobile pattern not dissimilar to Germany, according to Ampere
viewing experience. Analysis. Time spent then drops off as respondents age,
significantly so among those ages 35 and older. Again, the
Looking at internet speeds and connections, the advent pattern follows that of Germany and most other countries
of 5G is expected to have a positive impact on digital in the study, though the numbers were much higher
video viewing. “That’s certainly going to increase the for each in the UK and US, which have well-advanced
adoption of video content and consumption across VOD markets.
different devices and the accessibility to it,” said Bill
Swanson, vice president of EMEA at Telaria. “France and
How Much Time per Day Do Internet Users in Select
Germany, and … other regions, [will] be dependent also Countries Spend Viewing Video-on-Demand (VOD)*?
on the type of streaming speeds outside of someone’s hours, by age, Q3 2018
own home and their smart TV and capabilities they have France Germany Italy Japan Spain UK US
there. But the adoption will continue to grow at a faster 18-24 2.2 2.1 1.9 1.3 2.4 3.1 2.9
and faster rate.” 25-34 1.4 1.6 1.6 1.0 1.6 3.4 3.1
35-44 0.7 0.9 1.2 0.6 0.9 2.1 3.0
Demographic Trends: Young Viewers Use Multiple 45-54
55-64
0.5
0.2
0.5
0.3
0.8
0.7
0.4
0.2
0.7
0.5
0.8
0.5
1.5
1.2
Devices and Platforms Note: *includes catch-up TV, free digital video, on-demand video from pay
TV provider and subscription VOD
Source: Ampere Analysis as cited in company blog, Oct 17, 2018
Teens and millennials are driving digital video viewing in 242546 www.eMarketer.com
France. Among teens, digital video viewer penetration
will pass 87% in 2019, and more than nine out of 10
18- to 24-year-olds will watch digital video, according to
our forecast. But children also increasingly watch digital
video. In 2019, 38.1% of children in France ages 11 and
younger will watch digital video.
FRANCE DIGITAL VIDEO 2019: SUBSCRIPTION OTT DRIVES DIGITAL VIDEO GROWTH ©2019 EMARKETER INC. ALL RIGHTS RESERVED 11A July 2018 report by Autorité de Régulation des Digital Ad Spending in France, by Format , 2018-2020
Communications électroniques et des Postes (ARCEP), millions of €, % change and % of total media ad spending
Centre de Recherche pour l’Étude et l’Observation 2018 2019 2020
des Conditions de Vie (CRÉDOC), Conseil général Search* €1,787 €1,966 €2,123
de l’économie, de l’industrie, de l’énergie et des —% change 14.0% 10.0% 8.0%
technologies (CGEIET) and L’Agence du Numérique also —% of total 15.1% 16.0% 16.6%
Social media** €1,088 €1,388 €1,579
found that 18- to 24-year-olds, on average, spent more
—% change 62.6% 23.0% 18.0%
time watching digital video than TV each week. Adults
—% of total 9.2% 10.9% 12.4%
ages 25 and older, respondents clearly watched more TV
Video* €387 €461 €543
than digital video. Teens (ages 12 to 17) on average spent
—% change 13.2% 19.0% 18.0%
1 hour more with TV than digital video each week. —% of total 3.3% 3.7% 4.3%
Banner* €499 €514 €524
“Overall broadcast TV [live and catch-up] viewing is —% change 13.7% 0.8% 0.3%
showing a slight decrease in time spent, but still remains —% of total 4.2% 4.2% 4.1%
a firm favorite with 50+ audiences and a regarded Other €1,233 €1,248 €1,260
medium for advertisers,” said Lisa Menaldo, co-founder —% change 3.9% 2.0% 1.0%
of The Advisory Collective. “As a market, digital media —% of total 10.3% 10.1% 9.9%
consumption and time spent has not changed but habits Total €4,984 €5,526 €6,030
have, with younger audiences [millennials especially] —% change 18.8% 10.9% 9.1%
preferring to watch video programming [SVOD or AVOD] —% of total 42.0% 44.8% 47.2%
Note: *includes advertising revenues from all digital platforms (fixed and
on mobile devices.” mobile); **includes revenues from social videos
Source: Magna as cited by Emarketing.fr, June 17, 2019
Younger people in France are driving digital video usage, 248304 www.eMarketer.com
and millennials are the catalysts behind the shift in All formats of video ads, including mobile, IPTV and
devices used. According to YouGov as cited by SNPTV, desktop, saw spending grow in H1 2019, vs. H1 2018,
44% of millennials (ages 18 to 34) used a smartphone to according to SRI, Oliver Wyman and UDECAM. While
watch TV content in January 2019, against 29% of those mobile is currently driving video ad spending and
ages 18 and older. recorded the largest single share, spending on IPTV ads
is rising fastest with 28% growth between H1 2018 and
Although smartphone viewing is still lower among H1 2019.
millennials than watching on a desktop/laptop (53%) or
TV (78%), we estimate that millennials have the highest In terms of digital video ad viewability, France with its
mobile phone video viewer penetration. 78% in Q2 2019 is slightly above the international average
of 77% for the same timeframe, according to Meetrics.
In addition, according to Integral Ad Science, video
OPPORTUNITIES FOR MARKETERS advertising performs better than static display ads on the
mobile web in France, with the video format recording the
Video ad spending in France is climbing sharply. According best exposure times.
to Syndicat des Régies Internet (SRI) and Oliver Wyman
in collaboration with Union des Entreprises de Conseil et Not only is video ad spending expected to grow, but video
d’Achat Média (UDECAM), video ad spending in France traffic is also on a steep upward trajectory. Worldwide
in H1 2019 was 16% more than in H1 2018, making up internet video traffic was expected to increase fourfold
42% of total display ad revenues. Magna Global has even between 2017 and 2022, with live video traffic multiplying
predicted growth in video ad spending of 19.0% for 2019, 15-fold in that time period, according to Cisco. As a result,
according to data cited by emarketing.fr. live digital video is predicted to account for 17% of all
internet video traffic in 2022. France’s well-developed
communications infrastructure means that one can
expect this share to be even higher. Additionally, the
introduction of 5G and improved internet connectivity are
bound to increase the digital video audience.
FRANCE DIGITAL VIDEO 2019: SUBSCRIPTION OTT DRIVES DIGITAL VIDEO GROWTH ©2019 EMARKETER INC. ALL RIGHTS RESERVED 12The digital video advertising market is growing and “Consumers are tolerant of advertising when it’s
advertisers see investment opportunities. Consumers in relevant, which is where advanced TV is particularly
France however, like those in Germany and elsewhere in useful for brands,” TVSquared’s Robertson said. “How
Europe, are not as excited about video ads. tolerable consumers find an ad is down to how engaging
it is, so advertisers need to look into how audiences
According to an October 2018 Penthera and EMI are interacting with their brand and produce effective
Research Solutions survey, 42.0% of internet users campaigns that build on this.”
in France are frustrated by mobile advertising within
streamed videos and find it annoying—slightly higher than As the use of IPTV and other advanced and connected
the 40.0% of respondents in Germany. TV devices become more prevalent in France, so will the
opportunity for targeted advertising and providing ads that
Millennials, who are drivers for mobile video viewing, consumers are more willing to accept.
are especially annoyed by video ads. Four in 10 16- to
24-year-olds and 32% of 25- to 34-year-olds said they use
an ad blocker to avoid seeing video ads before or after
watching a clip or show, according to a Q1 2019 survey KEY TAKEAWAYS
by GlobalWebIndex.
■■ SVOD is booming in France. SVOD has taken off in
the past year, with an additional 4.5 million subscription
Reasons that Ad Blocking Users in France Use an Ad
OTT viewers this year compared with 2018. Consumers
Blocker, by Age, Q1 2019
% of respondents in each group are becoming more comfortable with the subscription
16-24 25-34 35-44 45-54 55-64 model, and many are using subscription OTT on a
There are too many ads on the internet 63% 58% 60% 64% 72% regular basis.
Too many ads are annoying or irrelevant 62% 55% 55% 62% 63%
■■ Devices used for video typically depend on the
Ads are too intrusive 51% 44% 51% 52% 64%
Ads take up too much screen space 43% 36% 38% 36% 42%
content viewed. Across all types of content, multiple
To avoid having to see video ads before 40% 32% 25% 29% 33% devices are used increasingly, with TV still a strong
watching clips/shows favorite for long-form content. Millennials are driving
Ads sometimes contain viruses or bugs 39% 38% 30% 31% 36% mobile video viewing.
To speed up page loading times 32% 29% 28% 27% 25%
I try to avoid all ads wherever, whether 30% 30% 30% 33% 47% ■■ Local competitors are adjusting to compete with
on TV or online
To stop ads being personalized based 26% 25% 24% 28% 33%
global rivals. While Netflix viewership in France rose
on my browsing history by over 97% in 2018, with further growth expected this
Ads might compromise my online privacy 19% 21% 15% 18% 18% year, other services have grown their viewer numbers
To stop my device's battery life being 17% 19% 16% 10% 10% as well. Several global competitors are planning to
drained
I want to stop my data allowance from 9% 15% 9% 7% 4% enter the market, while local/national players are joining
being used up forces to launch new platforms.
Other 1% 4% 3% 2% 1%
Note: n=1,881 ■■ While consumers don’t like video advertising,
Source: GlobalWebIndex, June 25, 2019
new devices and services provide opportunities.
248214 www.eMarketer.com
Consumers in France are not keen on video advertising.
One reason why consumers are bothered by advertising However, new services that will need advertising as
is that often ads aren’t relevant to them. At least 55% part of their revenue model, as well as new devices that
of internet users ages 16 to 64 used an ad blocker in allow for more targeted advertising, will provide further
Q1 2019 because they found ads annoying or irrelevant, opportunities for marketers.
according to GlobalWebIndex. Moreover, only 21% of
respondents in France ages 18 to 69 found marketing
messages of brands they regularly interact with more
relevant than those from companies they don’t interact
with regularly, according to a March 2019 survey by
Periscope by McKinsey. One-third (34%) found marketing
messages of brands they regularly interact with
less relevant.
FRANCE DIGITAL VIDEO 2019: SUBSCRIPTION OTT DRIVES DIGITAL VIDEO GROWTH ©2019 EMARKETER INC. ALL RIGHTS RESERVED 13EMARKETER INTERVIEWS GfK
GlobalWebIndex
Thomas Bremond Harris Interactive
General Manager International
Idate
FreeWheel
Interviewed July 23, 2019
Integral Ad Science
Junior City
Brian Kline L’Agence du Numérique
Chief Product Officer
Penthera
Magna Global
Interviewed August 22, 2019 Médiamétrie
Meetrics
Lisa Menaldo
Co-Founder
NPA Conseil
The Advisory Collective Oliver Wyman
Interviewed August 21, 2019
Penthera
Periscope by McKinsey
Blair Robertson
CTO Schole Marketing
TVSquared Syndicat des Régies Internet (SRI)
Interviewed August 21, 2019
Syndicat National de la Publicité TéléVisée (SNPTV)
Bill Swanson Union des Entreprises de Conseil et d’Achat Média
Vice President, EMEA (UDECAM)
Telaria Vertigo
Interviewed July 21, 2019
YouGov
READ NEXT EDITORIAL AND
PRODUCTION CONTRIBUTORS
France Time Spent with Media 2019: Digital Will Claim
41% of the Total Anam Baig Senior Editor
Joanne DiCamillo Senior Production Artist
Donte Gibson Chart Editor
SOURCES Katie Hamblin Chart Editorial Manager
Dana Hill Director of Production
Ampere Analysis Erika Huber Copy Editor
Autorité de Régulation des Communications Ann Marie Kerwin Executive Editor, Content Strategy
électroniques et des Postes (ARCEP) Stephanie Meyer Senior Production Artist
Centre de Recherche pour l’Étude et l’Observation des Heather Price Deputy Editor
Conditions de Vie (CRÉDOC) Magenta Ranero Senior Chart Editor
Amanda Silvestri Senior Copy Editor
Centre national du cinéma et de l’image animée (CNC)
Cisco
Comscore
Conseil général de l’économie, de l’industrie, de
l’énergie et des technologies (CGEIET)
emarketing.fr
EMI Research Solutions
Eurostat
FRANCE DIGITAL VIDEO 2019: SUBSCRIPTION OTT DRIVES DIGITAL VIDEO GROWTH ©2019 EMARKETER INC. ALL RIGHTS RESERVED 14The leading research firm for marketing in a digital world.
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