Fragmented German SVOD market poised to soar behind Amazon & Netflix

Amazon Prime Instant Video, after just more than a year in Germany, owns more than a third of the very fragmented market, outpacing all other players, including high-profile rival Netflix, which ranks 5th after launching in September.

And those numbers are poised to grow rapidly, as the German consumer appears to be eagerly adopting video on demand services.

A new report from Gold Media shows that 35% of all Internet users in Germany – more than 18 million people — currently access VOD services, 75% more than just six months ago.

Amazon (which entered the market as LOVEFiLM) has aggressively added content to its service, both before Netflix rolled out in September, and since its highly publicized deployment. That strategy has given it 33.2% of the current market. iTunes (11.3%), Maxdome (11.3%), Google Play (10.8%), Netflix (8%), Amazon Instant Video (5.7%), Unitymedia (4.4%), Videoload (3.1%) and Watchever (2.3%) round out the top services, with about 12.1% of respondents saying they used other VOD services.

In 2014, meanwhile, Gold reported that some 50 VOD services were available to German consumers. Subscription VOD (SVOD) revenues for 2014 were forecast at 71 million euros ($80.4 million) in 2013. But Gold expected SVOD to top 379 million euros ($429.4 million) by 2019, an increase of more than 434%.

Gold last year said “the battle for eyeballs is opening up,” in Germany. This year, it’s apparent that most of those eyes are focused on two SVOD players with deep-pockets: Amazon Prime Instant Video and Netflix.

Netflix – after just five months in market – already has claimed 8% of share; between it and Amazon Prime Instant Video, they control better than 41% of the market.

What content is most popular with German subscribers? For movie fans, it was The Hobbit. Fans of television series, meanwhile, said they watched a trio of series: The Big Bang Theory (7.4%), Breaking Bad (6.9%) and The Walking Dead (4.8%).

Gold’s report was based on a survey of more than 1,100 18-69-year-old German Internet users. It was carried out in February 2015. 

Stay tuned.

Jim O’Neill is Editor of Videomind and Principal Analyst at Brightcove. You can follow him on Twitter @JimONeillMedia and on LinkedIn