28 JUN 2023

Why the entertainment industry has been experiencing a wildly accelerated evolution?

BB Media partnered with DEG International and created the ‘International Digital Entertainment’ report outlining the industry’s evolution, penetration, and value in different markets worldwide.

28 JUN 2023

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Unsurprisingly, the Media and Entertainment industry has been experiencing a wildly accelerated evolution in the past few years. One of the main reasons? The ever-growing expansion of streaming platforms, their catalogs, plans, and revenue models. With this reality in mind, BB Media partnered with DEG International and created the 'International Digital Entertainment' report outlining the industry's evolution, penetration, and value in different markets worldwide, as well as the consumers' engagement and preferences.

The data was collected through BB Media's reports and services and covers SVOD, AVOD, EST, FAST, PAY TV, and TVOD, up to and including Q1 2023. Also, it draws a profile on Australia, Brazil, France, Germany, Italy, Japan, Mexico, the Nordics, South Korea, Spain, and the United Kingdom. In the competition for the most extensive library, the United Kingdom takes the lead (229K), followed by Japan (202K) and South Korea (198K), with Italy (183K) and Brazil (171K) in fourth and fifth positions. The UK also has the most announced titles in production in 2023 (27), intended for Netflix's catalog.

While most countries have a penetration rate of over 75% of viewers who watch content online, Brazil has a penetration rate of just 46%. If we were to zoom out, we would see that in LATAM, the level of online viewing is 47%. However, on average, six different platforms are used to watch content, making it the region with the highest usage of platforms. It was possible to identify that the advertising revenue model is taking the world by storm, particularly in North America, where AVOD penetration is highest, with 75% in the US and Canada. In comparison, LATAM has a penetration of 37% and EMEA of 60%. In APAC, where SVOD is the preferred way to watch for 82% of viewers, AVOD penetration is just 40%, highlighting a strong preference in the market to pay for ad-free content. This does not align with the offer in these countries as it was found that in Japan and South Korea (the ones with the most extensive catalog in the region), the predominant revenue model is the Transaction VOD.

This is just a peak of the insightful data the International Digital Entertainment report offers. As we look ahead, the future of the streaming industry holds exciting possibilities, and it is with information like the one presented here that will make adapting to these advancements easier, preparing players and buyers for what is to come. "As we watch SpaceX create a paradigm shift in space exploration, one where innovators try faster and fail faster too, our industry is embarking on its own new era of experimentation. With the white heat of innovation all around us, the role for reports like this is to connect and channel that energy into valuable entertainment discoveries that benefit everyone," said Joe Braman, Co-Chair of Digital Entertainment Group International & SVP of International Digital Account Management.

Moreover, Tom Gennari, CEO at BB Media, added: "The Audiovisual Industry won in globalization, developed in localization, and achieves its greatest splendor in the globalization of the local. This is only possible thanks to the collaboration of all companies that are part of this value chain. The work done by BASE and DEGI is fundamental for this global and local interconnection to happen."