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74 TVBEurope Data Centre


Connected device report: Germany


The increasing number of OTT options is driving growth in the German connected device market, according to research by SNL Kagan


SNL KAGAN has provided TVBEurope with the latest insight from its connected device coverage in Germany — as part of its Global Multichannel Markets service — which shows how the burgeoning OTT offering is pushing the pace of growth in the connected device market. The company’s report follows Blu-ray players, digital televisions, PCs (connected to TVs), smartphones, streaming media players, tablets and video game consoles, and estimates that from 2013 to 2018, the number of connected devices per household in Germany should increase from 4.16 to 5.49. “From web-based video services such as Google’s YouTube and others, to the increasing number of second screen options offered


to more than double from 2013 to 2018 from almost 44 million to more than 100 million.” SNL Kagan’s research suggests that smartphones should remain the standout OTT video consumption device in the German market, as well as the whole of Western Europe. “The number of connected smartphones in Germany should increase by more than 12 million between 2013 and 2014, and continue with rapid growth throughout the forecast period. Usage of smartphones to watch OTT video should increase along with the growth in the overall installed base. In 2013, roughly 56 per cent of the smartphone-installed base was used to watch OTT video.” SNL Kagan esimates that by 2018 that


Germany connected and in-use devices to watch OTT video


www.tvbeurope.com August 2014


Connected and in-use devices (installed-base)


“From web-based video services to the second screen options off ered by incumbent pay-TV operators, the availability of more video entertainment options outside of the traditional delivery channels is boosting both shipments and usage of connected devices in Germany”


by incumbent pay-TV operators, the availability of more video entertainment options outside of the traditional delivery channels is boosting both shipments and usage of connected devices in Germany,” the research states. These factors are expected to play catalysts for considerable growth in the market (the 121.2 million installed base in 2013 is projected to grow to 141.3 million this year). “The growing number of video options for consumers is also leading to increasing usage of those options,” the report continues. “The number of connected devices being used to watch OTT video modelled


number should grow to 70 per cent, or 40.2 million smartphones.


Tablets


With the number of in-use tablets growing at a compound annual growth rate of 32.6 per cent from 4.7 million in 2013 to 19.3 million in 2018,” says the report. SNL’s research has shown that video consumption is a signifi cant application for most tablet users, “with over half of all tablet owners watching OTT video in 2013. Even though it is a relatively new device category, the installed base of connected tablets is expected to grow signifi cantly, from almost 8.4 million in 2013 to 21.9 million in 2018.”


Connected TVs


Another area of growth can be seen in Germany’s installed base of connected televisions, with the number moving from 6.4 million in 2013 to 27.8 million in 2018. “While TV Everywhere apps for Smart TVs are scant in this market, there are suffi cient SVoD and TVoD apps available to satisfy most viewers,” explains the report. “In 2013, more than half of all digital TVs shipped to Germany were Smart TVs, up from roughly one-third in 2012. In 2018, connected TVs should be the second-largest in-use device behind smartphones, with 19.5 million connected TVs used to watch OTT video, up from 5.2 million in 2013.”


Connected devices per broadband household Game consoles


While the total installed base of connected video game consoles in the market is expected to decline over the forecast period from 25.7 million in 2013 to 21.7 million in 2018, the percentage of total consoles in use to watch OTT video should increase. “Video game consoles have traditionally been a dominant platform for viewing OTT video services on televisions not only because of their parallel use for gaming, but also because of offering a faster interface to watch OTT video compared to other devices like smart TVs or streaming media


players,” says the report. “Not only should this continue with the new generation of video game consoles, but also important to note is Microsoft’s recent decision to roll back the requirement to subscribe to Xbox Live to view OTT video. Although video game consoles as a share of the total in-use market are modelled to shrink signifi cantly over the forecast period, declining from 23 per cent in 2013 to 18 per cent in 2018, the aforementioned factors should expand the number of consoles in use to watch OTT video from 10.2 million in 2013 to almost 17.6 million in 2018.”


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