According to figures from the European Audiovisual Observatory, the TVOD market in Europe stood at 2.4 billion euros in 2022. In 5 years, the market has been completely reversed: while the Rental and sale of physical videos represented 62% of turnover in 2018, they will only represent 38% in 2022, overtaken by digital rental and purchase.
With a turnover of 900 million euros, the physical market shows a certain resistance, even if its business volume decreases from year to year. The Observatory notes that the growth in rental revenue (TVOD) has exceeded that of retail (+10% to 0.7 billion euros for TVOD and +4% to 0.8 billion euros for physical sales) and that at the end of 2022, they are almost equal. The top three countries of Germany (32%), the UK (22%) and France (19%) together represent 73% of the physical video retail market at the end of 2022. concerns physical rental, with less than 1% of overall revenue, it has almost disappeared. It is also Germany which resists the most: Germany (53%), Italy (9%), the United Kingdom (9%) and Sweden (8%) represent 79% of the figure Blu-ray and DVD rental business.
Digital consumption, through purchase or rental, is practically equal with a slight advantage for the EST (32% of revenues), which is mainly explained by the higher price of films for purchase than for for rental. According to the Observatory, the most active markets were Germany (18%), Spain (12%), the Netherlands (11%), the United Kingdom (10%), Italy ( 8%) and Turkey (8%), which accounted for two-thirds of the net growth in digital video in 2022. The digital market has taken over as it accounts for 62% of the home video market. However, compared to Europe, the physical sales market remains the leading market with 37% of turnover, but this should stop in 2024. As an example and for France, market revenue physical at the end of 2022 were 235 million euros, TVOD 162 million euros and EST 83 million euros.