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VPRT Forecast for the German Media Market in 2017

25. Oktober 2017

Audiovisual media as an economic factor - revenue increases by 637 million euros to reach a total of 11.6 billion euros, growth in all segments

Berlin, 25 October 2017 Germany´s audiovisual media remain on their growth track. Across all the industry´s market segments, radio, audio, TV and video, the Association of Commercial Broadcasters and Audiovisual Services in Germany (VPRT) is forecasting revenue growth of 5.8 percent or 637 million euros for the full year 2017, to reach a total of 11.6 billion euros. Last year, revenue generated by the industry rose by 615 million euros (+5.9 percent) to just under 11 billion euros.

Hans Demmel, Chairman of the VPRT Management Board and Managing Director of n-tv, said: "Audiovisual media are often underrated in terms of their significance for national economies. The most recent figures and the forecast for the current year point to particularly stable and healthy growth, clearly demonstrating just how important television, radio and our digital offerings are. This may not however be jeopardised by regulatory standards, such as the ePrivacy Regulation. Our companies need fair competitive conditions. For not only do upstream and downstream sectors benefit from this, but also our viewers, our listeners and our users."

Frank Giersberg, Member of the Board of Directors responsible for Market and Business Development at VPRT, said: "For 2017, we are forecasting an increase in revenue of half a billion euros for the German market, with growth in every individual segment of the audiovisual media industry. Additional market growth is expected over the next few years."

In the case of radio advertising, the association anticipates net revenue growth of 2.2 percent to around 0.79 billion euros in 2017 (previous year´s growth: +3.3 percent). In the in-stream audio advertising segment, growth of 38 percent to around 29 million euros is expected (2016: +40 percent). A rise of 3.1 percent is envisaged for radio and audio advertising revenue (linear and non-linear) to reach a new high of 0.81 billion euros.

In the case of television advertising, VPRT is forecasting net growth of approx. 1.1 percent to 4.6 billion euros for 2017 (2016: +3.1 percent), for the sector of online video advertising integrated into streaming facilities (in-stream video advertising), an increase of 23 percent to 0.49 billion euros (2016: +24 percent). According to the VPRT forecast, total revenue from video advertising (linear and non-linear) will climb by 2.8 percent to 5.1 billion euros, topping the 5-billion mark for the first time.

Paid content revenue in the audiovisual media sector is expected to increase by 12.5 percent to some 3.7 billion euros by the end of 2017, also a new record figure. In this area, pay TV will be the segment generating the highest revenue, realising growth of around 7 percent to reach 2.3 billion euros. Paid video-on-demand revenue is estimated to grow by 26 percent to 0.69 billion euros and on-demand income from audio offerings by 20 percent to some 0.7 billion euros. The teleshopping sector also continues to grow, with VPRT expecting a 3 percent increase in revenue to just under 2 billion euros.

 

 Audiovisual media revenues* in Germany

Forecast net revenue in €m, changes in % and in €m

Revenue segment

2017e
in €m

Changes
in %

Changes
in €m

2016
in €m

Radio advertising**

785

+ 2,2 %

+ 17

768

In-stream audio advertising**

29

+ 38 %

+ 8

21

Audio advertising

814

+ 3,1 %

+ 25

789

Television advertising**

4,609

+ 1,1 %

+ 49

4,560

In-stream video advertising***

488

+ 23 %

+ 92

396

Video advertising

5,097

+ 2,8 %

+ 141

4,956

Audiovisual advertising****

5,911

+ 2,9 %

+ 166

5,745

Pay TV & pay TV on-demand

2,326

+ 7,2 %

+ 156

2,170

Paid video on-demand

691

+ 26 %

+ 141

550

Pay-TV & paid VoD

3,017

+ 10,9 %

+ 297

2,720

Paid audio-on-demand

696

+ 20 %

+ 116

580

Paid AV content

3,713

+ 12,5 %

+ 413

3,300

Teleshopping

1,988

+ 3,0 %

+ 58

1,930

Audiovisual media*****

11,612

+ 5,8 %

+ 637

10,975

* Net revenue generated by all providers across the entire German market; ** Including commercial and public service providers;
*** Including international players; **** Not yet included under "Audiovisual Advertising": in-game, cinema and audiovisual outdoor advertising; ***** Not yet included under "Audiovisual Media" is other revenue generated by audiovisual media enterprises (e.g. from rights trading or licences) or fee income on the part of public service broadcasters. Nor has account been taken of revenue generated at upstream or downstream stages of the value chain (producers, networks, platforms, devices, agencies, service providers etc).
Source: VPRT Autumn Forecast 2017 (Revised: October 2017)

Experts consulted for the forecast anticipate continuing growth in competitive pressure created increasingly by international players, along with rapid advances in media convergence over the period 2018 to 2022. Ongoing development of the audiovisual market will be shaped notably by the expansion of non-linear offerings, increasing investment in various types of interactive offerings (e.g. Smart TV, Smart Radio), the introduction of new types of offerings (e.g. virtual reality, 360-degree videos) and further advances in digitisation and automation on an increasing number of levels (e.g. addressable TV, intelligent user interfaces, voice-controlled platforms, recommendation engines, metadata, automated booking systems and programmatic advertising).

Charts from the VPRT Media Market Forecast for 2017

Queries to:
Frank Giersberg, Member of the Board of Directors, Market and Business Development
T | +49 30 3 98 80 – 121, E | giersberg@vprt.de
Press Spokesman Hartmut Schultz, Hartmut Schultz Kommunikation GmbH
T | +49 30 3 98 80-101, E | schultz@schultz-kommunikation.de

About VPRT
VPRT represents commercial broadcasting and audiovisual companies in Germany. With their TV, radio, online and mobile offerings, its approximately 150 members enhance Germany´s media landscape in terms of diversity, creativity and innova-tion. To ensure that things remain this way even in the digital world, the regulatory, technological and economic parameters must be right. As a trade association, we support our companies in their dialogue with politicians and market partners in order to achieve this goal – at both a national and EU level.

Verband Privater Rundfunk und Telemedien e.V.
Stromstrasse 1, 10555 Berlin
Rue des Deux Eglises 26, B-1000 Bruxelles – Brussels Office
T | +49 30 3 98 80-0, F | +49 30 3 98 80-148
E | info@vprt.de
www.vprt.de


additional information

Kontakt

Frank Giersberg

Mitglied der Geschäftsleitung / Markt- und Geschäftsentwicklung, Kaufmännischer Leiter

Kontakt

Hartmut Schultz

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