Exploring the Diversity of Business Models in EMEA's Streaming Services

Streaming platforms have revolutionized the way the public consumes entertainment, and the EMEA region (Europe, Middle East, and Africa) stands as fertile ground for the development of innovative business models in the streaming industry. As the demand for digital content continues to surge, streaming platforms have adopted diverse strategies to cater to a wide range of audiences. 

The EMEA region, as of September, boasted a thriving streaming industry, with a remarkable total of 2,184 streaming platforms catering to a diverse audience. Collectively, these platforms offer an extensive content library comprising an impressive 635k movies and series across 137 countries and territories. This expansive reach underscores the global impact of EMEA’s streaming services, providing entertainment options for viewers around the world.  

In terms of revenue distribution, the EMEA streaming landscape reveals an intriguing breakdown: Subscription Video on Demand (SVOD) accounts for 38% of the market, emphasizing the popularity of subscription-based models. Transactional Video on Demand (TVOD) follows closely behind at 22%, providing viewers with the flexibility to rent or purchase individual titles. Advertising Video on Demand/Free Video on Demand (AVOD/FVOD) commands a significant 20% share, making use of targeted advertising to provide free access to content. Validated Video on Demand (VVOD) contributes 12% to the market, while TV Everywhere accounts for 6%, granting subscribers access to content across multiple devices. 

Now speaking on user’s preferences and business model diversity in the first quarter of 2023 the dynamic world of streaming services within the EMEA region, it paints an intriguing picture of the industry’s multifaceted landscape. A prominent choice among users is SVOD and AVOD, comprising a substantial 28% of usage across EMEA. This combination underscores the value users place on accessing a diverse range of content while offsetting expenses through targeted advertising—a testament to the adaptability of consumers in balancing cost and content selection. In the runner-up position, a trifecta of models emerges: SVOD, AVOD, and TVOD, with a 16% share. This choice showcases the nuanced approach users take to their streaming habits, where they not only subscribe to platforms but also indulge in a la carte content, affording them the liberty to curate their viewing experience from an expansive catalog. On the podium’s third step, AVOD is the business model chosen with a notable 11%, reaffirming the appeal of free, ad-supported content in the EMEA streaming landscape. These user-driven trends reflect the dynamic nature of the industry, where choice and diversity remain paramount.

Following this last note on the preference of AVOD, we can now follow on how the landscape has witnessed the emergence of FAST (Free Ad-Supported Streaming TV) channels lately, providing viewers with a curated selection of free, ad-supported content. FAST channels have gained popularity due to their no-cost access and the ability to offer a range of genres and content types, creating an engaging and cost-effective viewing experience. As these numbers continue to grow, the region remains at the forefront of the streaming revolution, offering an unparalleled variety of content and business models to suit every taste and preference.  

In the ever-evolving landscape of streaming services in EMEA, these diverse business models offer flexibility and cater to varying consumer preferences. As the industry continues to expand, the competition among these models fuels innovation and benefits both content creators and consumers alike.  

1. Subscription-Based Services: 
   Subscription-based models have become the bedrock of the streaming industry in EMEA. Leading platforms such as Netflix, Amazon Prime Video, and Disney+ offer subscribers access to a vast library of content for a monthly fee. These services often provide ad-free viewing, original programming, and multiple device compatibility, making them a popular choice among consumers. 
2. Transactional VOD: 
   TVOD services, including iTunes and Google Play Movies, allow users to rent or purchase individual titles on a pay-per-view basis. This model appeals to consumers who prefer a-la-carte content consumption and is often used for new releases and niche content. 
3. Advertising VOD/Free VOD: 
   Ad-supported streaming services like Hulu, YouTube, and a growing number of localized platforms in EMEA offer free access to content by monetizing through advertisements. These platforms attract a wide user base and generate revenue through targeted advertising, enabling users to enjoy content without a subscription fee.  Plus, Advertising-Supported Video on Demand services like Pluto TV offer a wide range of content with ad-supported revenue models. These services are gaining traction as they provide an alternative to traditional television channels. 
4. Validated VOD: 
   The access to the streaming service is for free, but it is only granted when the user demonstrates that they are a client of the company i.e.: Sky Go in Italy, Kanopy in the UK, NOS TV in Portugal. 
5. TV Everywhere: 
   The user needs to be subscribed to a cable service and that subscription is what grants them access to the content that platform is broadcasting without extra cost. 

ABOUT BB MEDIA 

BB Media is a global Data Science company, specializing in Media and Entertainment for over 36 years. BB Media monitors +4,500 streaming services in +250 countries and territories, their prices, plans, packages and commercial offers. In addition, all film and series catalogues, including standard metadata. Streaming services, networks, programmers, cable operators, agencies, advertisers, studios, distributors, content APPs and technology companies rely on BB Media’s information and value-added analysis to make strategic decisions.     

BB Media has offices in USA, Argentina, Brazil, Mexico, Colombia, Ecuador, Italy and the Netherlands.

Sources: 

BB Media – Multiscreens+ | Content Pulse – September 2023  

BB Media – Online Media Essentials – 2Q2023