Overall video entertainment market spend in the Netherlands remained flat in 2014 and is on track to return to growth this year, according to the latest research from Futuresource Consulting.
The category – which includes digital video, box office, packaged video and subscription TV – totalled more than €2 billion in 2014 and is on track to exceed €2.1 billion in 2015.
Last year, a fall of 1% for Pay-TV subscriptions spend was offset by 3% growth at the box office and 3% growth in home video revenue. Following severe and continued declines in packaged video, digital spend is forecast to exceed packaged in 2015, accounting for 66% of home video spend, driven by Pay-TV VoD and Netflix.
“The Dutch video market tends to share similarities with the Nordics, more than any other European country, with rapid SVoD uptake and over 20% decline in packaged video,” says Joanna Wright, Senior Market Analyst at Futuresource Consulting. “This shifting mix of video business was compounded by the bankruptcy of leading retailer, Free Record Shop, just a few months prior to Netflix’s launch.”
Growth of 51% is anticipated for the overall digital video market in 2015 with retail spend totalling €215 million, accounting for an impressive 63% of the home video market, a similar level to the US market in terms of digital uptake.
The Netherlands continues to have the most significant Pay-TV VoD market in Europe in terms of spend per head (except for Belgium), and despite Pay-TV subscriber saturation, Pay-TV VoD spend grew by 8% in 2014, with 8% growth expected in 2015.
Looking ahead, overall video spend is expected to reach over €2.2 billion in 2018, averaging 2% annual growth between 2015 and 2018. Pay-TV dominance will continue but its share of the market will fall from the current level of 74% down to 68% in 2018. Subscription VoD growth is forecast to be impressive and is expected to account for 55% of all home video spend by 2018 to reach €240 million.