State of VR in the German Video Industry. veed snapshot September 2016
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1 State of VR in the German Video Industry veed snapshot September 2016
2 Almost half of the German video services are experimenting with VR - Broadcasters are the most active players on the VR playground Availability of VR video content in Germany 1) Insights 47% 16,7% 33,3% no 44% of video services in Germany already offer VR content to its customers TV broadcasters are the most experimental group in VR 9% 44% Total n=34 83,3% Broadcasters 16,7% 50,0% Studios VoD Services n=12 n=6 n=8 75,0% 75,0% 12,5% 12,5% 12,5% 12,5% Operators n=8 announced yes Even though highly active in the VR gaming segment, some film studios are not yet engaged in VR video activities VoD services are fairly reluctant to VR activities yet. Netflix is active with a virtual adapted 2D app and promotional VR content to market their own productions With regard to operators, only Deutsche Telekom is publicly involved in Virtual Reality. DT will live stream a Red Hot Chili Peppers concert in VR 1) Overview of strategic groups in the entertainment ecosystem and their involvement (production/publishing/investment) regarding VR video content as of August 2016 Broadcasters: largest broadcasting groups active in Germany; studios: film production studios; operators: cable operators, ISPs German Video Industry
3 Focus Broadcasters: Documentaries and Sports are the Broadcasters most frequent content types VR soccer premiere: Fox Sports showed the first match of the current Bundesliga season in VR in the US Broadcasters prevalent VR content types 1) Examples & take-aways 50% 31% Documentary Prevalent VR content type, mainly as ondemand via apps Use the strengths of the new technology, enabling consumers to dive into other worlds 13% 6% Sports Widespread VR content type with huge growth and monetization potential Event-driven activities (e.g. Olympia) or channel-driven apps (Eurosport VR) with a mix of live and on-demand content Documentary Sports Promotional Cultural Events VR on-demand Live VR VR on-demand Live VR Promotional Cultural Events Innovative way to grab public attention to new content formats (e.g. Chicago Fire teaser). However, still used sparsely Mainly concerts of popular artists/music events 1) n = 16; i.e. channels active in VR across all observed broadcasters German Video Industry
4 Focus Broadcasters: VR is still in an early stage with short content dominating and a comparably low amount of VR assets available VR content insights VR content catalogues and distribution 3.2 min Avg. duration of VR content 1) 87% of VR channels offer 1-50 titles 1) 3% Videos longer than 10 min 1) Small content catalogues of channels (number of VR assets) Distribution mainly via individually branded TV formats Accumulation of VR content in one channel brand app also available 1) Analyses based on more than 400 available VR assets as of August 2016 German Video Industry
5 Focus Broadcasters: preference for basic and advanced VR platforms so far Basic Advanced Premium Devices Broadcasters active on VR platforms ) 80% 1) ) 60% 1) ) 30% 1) Price up to 30 up to 100 starting at 700 Quality (esp. Display) Low Medium High Set-up Easy Easy Difficult Installed base Very high High Low 1) n = 12 Broadcaster Groups active on VR platform German Video Industry
6 Summary & Outlook Status Virtual Reality in Germany: The VR video market in Germany is still in an experimental stage. An increasing number of market players are testing the VR water, but no mass market service has yet been deployed in the market. VR Content: Primarily short-form on-demand content in documentary and sports with live rarely in place for sports events, but limited to basic devices. Number of available VR assets is still very limited, but activities across the industry are increasing. Devices: Increasing reach for basic and advanced solutions, not only through extensive mobile bundling. Premium devices just recently launched in Germany, PlayStation to complete premium segment by end of the year. Outlook: Substantial investment along the entire value chain (production incl. cameras, headsets and distribution). Gaming is still the dominant market player considering VR, but learning effects towards the video market to be expected. Sports may get the VR locomotive for the video market. B2B use cases (medicine, engineering, etc.) will be the key drivers for VR technology. If you would like to evaluate the impact of Virtual Reality on your business and test the relevant devices, please get in touch with: Dr. Bernd Riefler chief marketing officer veed analytics Try it! German Video Industry
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