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German pay-TV revenue tops €2 billion

The Association of Commercial Broadcasters and Audiovisual Services (VPRT) has revealed the results of its ‘Pay-TV in Germany 2014’ survey.

The Association of Commercial Broadcasters and Audiovisual Services (VPRT) has revealed the results of its ‘Pay-TV in Germany 2014’ survey, at a press conference in Munich today.

According to the survey, revenue from pay-TV and paid video-on-demand rose by 11.4 per cent in Germany, from €1.84 billion in 2012 to €2.05 billion in 2013, breaking the €2 billion revenue mark for the first time. Across the entire German-speaking area, revenues generated by pay-TV and paid VoD increased to as much as €2.2 billion.

For 2014, VPRT is forecasting a 10 to 15 per cent rise in revenue volumes to around €2.3 billion in Germany and around €2.5 billion for the German-speaking area. Over the past five years, the number of pay-TV subscriptions in Germany has risen by almost 50 per cent to reach 6.4 million at the end of 2013. This amounted to approximately 7.1 million.

During the first five months of 2014, the average pay-TV reach achieved by channels licensed by the Television Research Working Group (AGF) amounted to 10.2 million viewers, compared with 9.2 million over the same period in 2013. The average share of the viewing market across all households amounted to 2.2 per cent during the first five months of this year. Among pay-TV households, the combined average share of the viewing market held by pay-TV programmes reached 14.7 per cent over the same period.

Frank Giersberg (pictured), head of market development at VPRT said: “Over the next few years, we are expecting sustained momentum in terms of growth and innovation in the pay-TV and paid-VoD segment, as well as in the sector of commercial TV and VoD offerings. This means that we could be on the verge of a new golden age of TV in Germany.”

The popularity of pay-TV can in part be attributed to the high-quality content, its exclusivity, diversity, innovation and creativity. According to VPRT´s estimates, some €800 million was invested in programmes in 2013. Increasing interest on the part of viewers is, according to VPRT, also due to the ease of its technical access.

Pay-TV providers are investing in innovative technology, such HD and Ultra HD, 3D, time-shifted television, mobile offerings and VoD. Pay-TV platforms, channels and OTT services are also expanding on-demand services, for example Snap by Sky, Horizon, Select Video, maxdome, and RTL now. This positive market development for pay-TV and paid VoD in Germany is expected to continue.