By Benjamin Sauge
As GFK acknowledges in a recent market study, the media and entertainment sector is experiencing a very quick transformation that offers major opportunities for advertising agencies, broadcasters and both digital and eContentplatforms. Therefore, in a period when customers differentiate themselves, this sector must increasingly rely on data studies.
CANAL+ AGAINST NETFLIX IN FRANCE
Few weeks after the first Oscar that Netflix received thanks to Alfonso Cuaron, the French premium television channel launched a new SVoD service to its customers: Canal+ Séries. Even if the management of the French company stated that this was not an answer to Netflix, which currently has more than 5 million subscribers in France, one could clearly see this new service as a serious competitor in the SVoD sector. Nowadays, Canal+ invest approximately 80 million of euros each year for the original creation of 8 series, but this figure could increase to 12 in 2020. With the same goal, Canal+ wants to invest even more than it is already doing, developing partnership with foreign broadcasters, in order to offer new exclusive series to its customers.
SPOTIFY DEVELOPS PODCASTS
In February, the Swedish platform of music streaming announced the acquisition of Gimlet Media and Achor, two major podcast producers and broadcasters. The Swedish group clearly display the will to invest between 400 and 500 million of dollars this year on podcasts. This strategy falls within the relationships between Spotify and music labels, to which the platform must remit 75% of its revenues. Seeking for new sources of income, and given that Spotify got listed on stock markets, the company must focus on profitability. According to PwC, the revenues coming from podcasts should increase by 30% between 2018 and 2022. Developing podcast will also allow the company to increase its advertising revenues, that currently represent $175 million (against $1.32 billion from subscribers), getting that the advertising market in the US with regards to podcast is currently estimated at $400 million. Lastly, this strategy also allows the company to enter into a wider model.