The EBU's Media Intelligence Service (MIS) has published a report addressing the increasing complexity of the video-on-demand (VOD) sector of the European audiovisual market, with a particular focus on over-the-top (OTT) services.

The study provides a picture of the current OTT landscape, defining the market, describing the value proposition and analysing the business models of the most prominent players.

Recent developments, such as the expansion of Netflix into 6 new European territories in September and the growing consumption of VOD within certain demographic groups, are creating uncertainty among our Members. There is a feeling in the sector that on-demand services, and particularly OTT, could be very disruptive, having a strong impact on traditional linear-TV consumption. On-demand services challenge the traditional PSM business model, and compete for the time and attention of their viewers. As a result, Members are contemplating their strategic reaction and deciding whether to collaborate or to compete with these new market entrants.

The report summarizes the main issues to be taken into account when addressing the topic from a strategy perspective. It analyses the impact of OTT services like Netflix on national markets, and offers insight into the reaction of EBU Members, detailing the roll-out of their own on-demand services, YouTube channels and apps.

EBU Members can download the report via the Media Intelligence Portal. The MIS will continue to monitor developments in this field, and plans to publish further studies on this topic in the future.