App Annie is excited to announce the release of its newest report outlining the state of mobile video content distribution in Europe. In this report, we investigate how the rise in video streaming service apps is fundamentally changing how viewers consume content on the continent. Video viewing on mobile devices is growing faster than the US, increasing over 130% from Q1 2013 to Q1 2014. Short-form video comprises the majority of views, however long-form is also popular among consumers: more than ⅓ of the videos watched on one’s smartphone are more than 30 minutes long. For app executives looking to stay ahead of consumer viewing trends, this report will help them assess the competitive landscape before launching their own video content distribution app in the marketplace. Below are just some of the headlines in our free report: Top 10 Video Content Distribution Apps for the Three Largest European Markets Biggest Trends in Video Content Apps Monetization Opportunities on Google Play

1. Apps and the
Evolution of Video
Content Distribution
in Europe
December 2014

2. Apps and the Evolution of Video Content Distribution in Europe
Summary
Apps offering video­on­demand and live streaming video content are on the rise, driven by
hardware advancements that make video consumption on mobile significantly more practical.
Although mobile video is surging worldwide, growth is particularly strong in Europe. Among the
European markets, the United Kingdom holds a significant lead in both downloads and
revenue for video content apps. However, Germany saw a higher ratio of revenue to
downloads than the UK for the quarter.
The top video content apps demonstrate that TV networks and platforms are primarily using
apps to enhance viewer loyalty and brand engagement. This reinforces traditional business
models, particularly those that rely on advertising. As a result, a strong app strategy is now a
vital part of viewer retention for content providers. However, some networks also found new
revenue streams from mobile, with RTL in Germany and the UK’s ITV leading the way. It was
evident that two types of video content apps were particularly successful in generating revenue
— those that offered live streaming content and those providing video content enriched with
additional data or interactivity. The opportunity in apps therefore extends beyond simple
content delivery; apps offer functionality that broadcast television cannot match, and viewers
are willing to pay for these additional features.
Although mobile video has already seen considerable growth, video apps are on the verge of
an explosion in downloads and revenue. There is a potential untapped goldmine on Google
Play — it is seeing a high number of downloads but publishers are yet to take full advantage of
revenue opportunities. Furthermore, apps are set to become an increasingly important delivery
vehicle for content as more connected devices enter the living room, and as the trend of
casting content to larger screens continues.
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3.
Apps and the Evolution of Video Content Distribution in Europe
Apps are making content distribution more accessible, aiding the unbundling of content and
reliance on broadcasters and TV platforms. However, the economics of unbundling means it is
only viable for a limited number of providers, so competition for brand equity on mobile devices
will be intense. To come out on top, networks, platforms and other content providers must
have an evolving app strategy that matches the inevitable changes in consumer demand.
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4.
Apps and the Evolution of Video Content Distribution in Europe
Table of Contents
1. Mobile Apps and the Evolution of Content Distribution
● The rise of video on mobile devices
● Demand for content on­the­go
2. Apps Driving the Video Content Revolution in Europe
● Top video content apps by country, Q3 2014
● Video content apps across countries and stores
3. Key Trends in Video Content Apps
● Mobile strategies reinforce existing business models
● New revenue streams from mobile
● Live streaming makes the money flow
● Enriched content drives revenue
● Mobile apps accelerate content unbundling
● Local content is vital for success
● A potential goldmine on Google Play?
4. The Future of Mobile Video Content
● Apps as a primary channel for content delivery
● Competition for content delivery
● The economics of unbundling
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5.
Apps and the Evolution of Video Content Distribution in Europe
Mobile Apps and the Evolution
of Content Distribution
Online and mobile technology have created seismic shifts in media content distribution.
Physical media sales are declining, replaced initially by digital sales and latterly by streaming
services. This revolution began with the music industry, but has most definitely spread to video
content in recent years. New services and traditional players are now discovering effective
business models to transform the industry.
Mobile apps represent the next phase of the content distribution revolution, creating an
additional channel for providers to engage with their audience. In the music industry, the
transformation is well underway. Pandora Radio sits near the top of the revenue ranks for apps
outside of games, and Spotify is rising rapidly. Video services are now following suit, seeing
dramatic growth over the last 12 months.
The rise of video on mobile devices
Video content is not new to mobile devices — YouTube has been one of the top downloaded
apps since the early days of the app stores. However, recent developments reveal a dramatic
rise of services offering long­form video content. Mobile hardware trends have seen a move
towards larger screens, accompanying advancements in technology bringing increased
storage capacity and better battery life. In combination with more extensive and faster data
plans, these changes make video streaming and consumption significantly more viable on
mobile devices, and are fueling the growth of video content apps.
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6.
Apps and the Evolution of Video Content Distribution in Europe
Video viewing on mobile devices increased 133% worldwide from Q1 2013 to Q1 2014, with
Europe seeing more rapid growth than North America. Although short­form video makes up a
significant proportion of this, videos longer than 30 minutes made up 48% of views on tablets
and 35% of views on smartphones. Combined, mobile devices accounted for more views of
videos over 30 minutes than connected TVs. In France, video­on­demand (VOD) services
grew 50% from 2011 to 2013, and in Germany VOD is forecast to grow 175% by 2019. As the
capabilities of mobile devices continue to expand, they can be expected to account for a large
proportion of this growth. The growing market offers a substantial windfall for major players —
VOD advertising revenue is expected to hit £160 million in the UK this year, up 27% on 2013,
and rise to £210 million in 2015.
Demand for content on­the­go
This rise in demand for online video services has been accompanied by a radical shift in that
demand. Armed with mobile devices more suited to video content, consumers now expect to
be able to watch what they want, when they want and where they want — no longer tied to
network scheduling and a fixed location. In many ways, this reflects the general trend towards
unbundling services in the mobile industry, as consumers demand the ability to personalize
content and services. In response to this demand, a number of over­the­top (OTT) content
services have arisen, including Netflix, Hulu and Amazon Instant Video. In the US, digital
content distribution stands at an historic turning point. Netflix subscribers now outnumber HBO
subscribers, inspiring HBO (and other networks such as CBS’s Showtime) to respond with a
standalone streaming service, due to launch in 2015. In Europe, traditional TV broadcasters
have responded to changes in demand and new competitors with their own on­demand and
live streaming platforms. Throughout Europe, major TV networks are now offering
supplementary on­demand services, including BBC iPlayer in the UK, RTL NOW in Germany
and myCANAL in France.
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