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VAUNET Forecast for the German Media Market in 2018

25.10.2018

Record Revenues of 12.4 Billion Euros for Audiovisual Media

Economic and social relevance of radio, audio, TV and video offerings continues to grow

Berlin, 25 October 2018 For 2018, the German media association VAUNET is forecasting a rise in revenue of 725 million euros (+ 6.2 percent) for audiovisual media in Germany, reaching a total of 12.44 billion euros. As a result, revenue generated by the radio, audio, TV and video sectors will exceed the 12-billion-euro mark for the first time. In 2017, the industry also recorded a revenue increase of 738 million euros (+ 6.7 percent) up to 11.71 billion euros.

Hans Demmel, Chairman of the VAUNET Management Board and Managing Director of n-tv, said: "Audiovisual media rank among the most important and fastest growing economic sectors in Germany. At the same time, the many hundreds of radio, audio and video offerings make a very significant contribution to society. It should therefore be in the basic interest of politicians to advocate fair competitive conditions for media companies located in Germany and in Europe."

Frank Giersberg, Member of the Board of Directors responsible for Market and Business Development at VAUNET, said: "The future belongs to audiovisual media. Progress along this path has remained constant for many years. During the current year, the demand for audiovisual media content and audiovisual advertising platforms is still continuing to increase across all sectors, particularly strong growth momentum being evident in the areas of streaming and on-demand offerings."

In the case of radio advertising, VAUNET is anticipating net revenue growth of 2.0 percent to around 800 million euros in 2018 (growth in 2017: + 2.1 percent). At a much lower level, growth of 50 percent is expected in the in-stream audio advertising segment up to around 44 million euros (2017: + 38 percent), while a rise of 3.7 percent is envisaged for radio and audio advertising revenue (linear and non-linear), reaching a new high of 843 million euros.

In the case of television advertising, VAUNET is forecasting net growth of approx. 0.5 percent to 4.61 billion euros for 2018 (2017: + 0.7 percent) and for the in-stream video advertising sector an increase of 15 percent to 552 million euros (2017: + 21 percent). According to the VAUNET forecast, total revenue from video advertising (linear and non-linear) will grow by 1.9 percent to 5.17 billion euros.

As a result, audio and audiovisual advertising revenue in Germany will reach a record figure of 6 billion euros for the first time in 2018.

Paid AV content revenue in the audiovisual media sector is expected to increase by 13.0 percent to around 4.34 billion euros by the end of 2018, exceeding the 4-billion-euro revenue mark for the first time. In this segment, pay TV will be the area generating the highest revenue, recording growth of around 4.0 percent to reach 2.39 billion euros (2017: + 6.0 percent). Paid video-on-demand revenue is estimated to grow by 30 percent to 1.04 billion euros (2017: + 45 percent), also a new record figure. On-demand income from audio offerings is expected to rise by 22.7 percent to some 909 million euros (2017: + 28 percent). The teleshopping segment also continues to grow, with VAUNET anticipating a 5.0 percent increase in revenue to reach 2.09 billion euros (2017: + 3.0 percent).

Audiovisual media revenues* in Germany
Forecast net revenue in €m, changes in % and in €m

Revenue segment
 

2018e

in €m

Change %

 

Change €

in €m

2017

in €m

Radio advertising**

800

+ 2.0 %

+ 15.7

784

In-stream audio advertising***

44

+ 50 %

+ 15.0

29

Audio advertising

843

+ 3.7 %

+ 30.2

813

Television advertising**

4,614

+ 0.5 %

+ 23.0

4,591

In-stream video advertising***

552

+ 15 %

+ 72

480

Video Advertising

5,166

+ 1.9 %

+ 95.0

5,071

Audiovisual Advertising  ****

6,009

+ 2.1 %

+ 125.1

5,884

Pay TV & pay TV-on-Demand

2,392

+ 4.0 %

+ 92.0

2,300

Paid Video-on-Demand

1,040

+ 30 %

+ 240

800

Pay TV & Paid VoD

3,432

+ 10.7 %

+ 332.0

3,100

Paid Audio-on-Demand

909

+ 22.7 %

+ 168.2

741

Paid AV content

4,341

+ 13.0 %

+ 500.2

3,841

Teleshopping

2,087

+ 5.0 %

+ 99.4

1,988

Audiovisual Media  *****

12,438

+ 6.2 %

+ 724.7

11,713

                 

* Net revenue generated by all providers across the entire German market;
** Incl. commercial and public service providers;
*** Incl. 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: VAUNET Market Forecast 2018 (Revised: October 2018)

For the period 2019 to 2023, VAUNET is expecting a continuing rise in demand for audiovisual media content and audiovisual advertising platforms. In the view of the experts consulted in this context, the most important trend in coming years will include many technology-driven and platform-driven features, such as smart TV and smart radio, digital content discovery solutions, for instance voice control and intelligent recommendation systems, addressable advertising and other data-based business models. Coupled with this, experts see, on the one hand, great opportunities to develop their offerings, but on the other hand, also a danger that some dominant platforms may restrict the development potential of media companies. Despite this, media companies are investing more than ever before in both content and the expansion of their non-linear and interactive offerings.

Downloads
VAUNET publication "Audiovisual Media Revenues in Germany in 2018“ (in German)
Charts from the VAUNET Media Market Forecast for 2018

Queries to:
Frank Giersberg, Member of the Board of Directors, Market and Business Development
T | +49 30 3 98 80-100, E | giersberg@vau.net

Press Spokesman Hartmut Schultz, Hartmut Schultz Kommunikation GmbH
T | +49 30 3 98 80-101, E | hs@schultz-kommunikation.com

About VAUNET:
VAUNET is the leading organisation for commercial audiovisual media in Germany. Formerly named VPRT (Association of Commercial Broadcasters and Audiovisual Services), with its headquarters in Berlin and an office in Brussels, it has been operating under the name VAUNET – German Media Association since 21 May 2018. The diverse business activities pursued by its approximately 150 members range from TV and radio to internet and streaming offerings.
The Association´s work focuses on convergent development in the markets for audiovisual media and plays an active role in shaping the relevant parameters at both a national and European level. The aim of the trade association is to create acceptance for the political and economic concerns of audiovisual media enterprises and raise awareness of the major socio-political and cultural significance of this industry in the digital age.

VAUNET – Verband Privater Medien 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@vau.net

Ansprechpartner

Frank Giersberg

Mitglied der Geschäftsleitung / Markt- und Geschäftsentwicklung, Kaufmännischer Leiter

Hartmut Schultz

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