mm1 analyses German TV Market in 2017

mm1 – the consultancy for Connected Business – has updated its trend paper “TV 2017 in Germany”. The paper guides through the essential trends in the German TV business for the upcoming years.

Already in early 2014, mm1 experts of the “Media Solutions & Consumer Electronics” practice had condensed the most important prognosis regarding the German TV market in the year 2017. Quite a bit has happened since then – starting with US market leader Netflix, who has been stirring the German market since its entry on September 16 last year. For the start of 2015, mm1 once again breaks down the crucial developments in the fields of customer and user behavior, providers and provision, demand and commercialization, as well as technology and enablers.

Here is an overview over some of the new key findings:

Customer and User Behavior

  • Parallel usage of TV and other media (second screen) becomes customary. With the young and affine to mobile, TV already comes second. The primary attention is aimed at other devices.

Providers and Provision

  • Netflix, Amazon and Co. alter the competition over Video on Demand (VOD) in Germany and increase the pressure on TV broadcasters.
  • Watch out for the trend towards double subscriptions. Consumers obtain both VOD and classical pay TV instead of deciding in favor of one variant.
  • Google challenges the incumbent position of Apple TV with VOD/web-TV streaming. Amazon Fire TV enters the scene as another strong contester.
  • The gain in relevance of IPTV in Germany is marginal until 2017. Satellite and cable dominate delivery with about 35 million connected households.

Demand and Commercialization

  • Distributors like Netflix and Amazon turn into content providers. Their exclusive content hits the spot with customers and increases their demand. Market volume is being enlarged accordingly.

Technology and Enablers

  • Ultra-HD (4K broadcasting with 3840 x 2160 pixels) will be supported with dedicated receivers this year already. The new standard for moving images in high resolution is on its way to the mass market, with huge market potential.
  • More than every second household  possess a connectable TV. The contest for supremacy between operating systems of Smart TVs has not been decided yet, however. Google, Samsung and Co. pursue differing concepts.
  • A TV is still standing in every household, but its relevance in the living room is declining. Media usage is concentrated on mobile terminal devices.
  • HbbTV (Hybrid Broadcast Broadband TV) is close to its breakthrough in 2016 with version 2.0. The improved European standard makes the set-top box obsolete.
  • OLED and SUHD displays are this season’s hottest hardware trends as seen on the Consumer Electronics Show in January 2015.