According to a new study on Internet TV, there are currently 1,424 online-TV services in Germany, with 194 million daily video hits. The number of people accessing videos has increased by about 17% compared to the previous year. The mobile use of online TV has also increased: Every fifth video hit occurs via mobile devices. Having grown quantitatively, particularly in the past few years, the online-TV market is consolidating and gains continuing professionalism. In this context, providers rely on in-house-produced content. On average, 78% of the videos of an online-TV channel are in-house productions. In order to make the market structure of the online-TV world more transparent, Berlin strategy consultant Goldmedia (www.goldmedia.com) was commissioned by BLM, the Bavarian Regulatory Authority for Commercial Broadcasting (www.blm.de), to produce “Web TV Monitor 2012”. The study’s examination of the growth and use of online TV in Germany is based on a survey of primary data research on all German online-TV providers and the annual study is being published for the third year.

1. Online TV in Germany
Web TV Monitor 2012
Commissioned by the Bavarian Regulatory Authority for
Commercial Broadcasting – BLM
October 2012
Goldmedia GmbH
Strategy Consulting
Prof. Dr. Klaus Goldhammer | Christine Link
Oranienburger Str. 27 | 10117 Berlin-Mitte | Germany
Tel. +49 30-246 266-0 | Fax -66 | Info[at]Goldmedia.de
www.Goldmedia.com | www.WebTVMonitor.de

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not imply that such names in terms of
2

3. Web TV Monitor 2012
Research objectives and methodology
Client and objectives Methodology
Client:  Project time frame: July to October 2012
 Goldmedia‘s study on the use  Primary data research through survey of all German
of German online TV online-TV providers (n=1,424 German online-TV
was produced for the channels) via online and offline questionnaires
Bavarian Regulatory
Authority for Commercial  Response: data on 198 online-TV channels
Broadcasting (BLM) (corresponding to the consumption quote of 14% )
 Survey period: August 22nd – October 7th 2012
Study objectives:
 13 interviews with industry experts and representatives
 Give overview of the German
online-TV market  Secondary data through online desk research
 Quantify and categorise online-  All data also available at www.webtvmonitor.de
TV market in Germany through
survey of all providers Response rates Web TV Monitor 2012
 Describe use and economic 1,424
state of online TV in Germany 14%
 Provide market analyses and 199
forecasts for online TV in
Web-TV-Angebote
Web TV channels/ Dargestellte
Displayed channels/
Germany insgesamt/Aussand
sent Angebote/Antworten
responded
3

4. Goldmedia’s six-attribute definition
of an online-TV channel
Video
1 is a central feature of the site
2 Browser based / accessible online If an online-
TV channel
3
German target audience fulfills all six
(German language or subtitles)
of these
Content is active requirements,
4
(i.e. updated regularly) it is included
in the
Own or licensed content*
5
database.
Comply with legal standards
6
(no pornography etc., imprint)
Source: Goldmedia Web TV Monitor 2010
* Because it was not possible to reliably code editing of content, data on content editing could not be gathered in the survey.
4

5. Online TV 2012: Online videos distributed
by a high number of platforms/devices
Value chain Online TV 2012
Conventional media Other
Content/video Internet-only NGO/insti- Private
companies/
producers providers tutions persons
TV Print Radio Film industry
Media centers Video centers Interactive multimedia portals
Aggregation/
platforms
Quelle: Goldmedia, BLM Web-TV-Monitor 2012; ohne Werbevermarkter
Channel website Social media YouTube Applications
Technical
distribution Web streaming 3G/4G
Devices PC/Mac Tablets Smartphone Smart TV STB
Final demand Users
5

6. 1,424 online-TV channels in Germany –
slight growth compared to 2011
Number of online-TV channels and development compared to the previous years
in Germany (2010 to 2012)
11% 0.4%
Growth compared to 2010 Growth compared to 2011
1,275 1,418 1,424
2010 2011 2012
Source: Goldmedia, BLM Web TV Monitor 2010-2012
Key facts
 Between 2010 and 2012, the online-TV industry increased to about 6 percent; churn rate: more
than 200 services were suspended between 2011 and 2012, and more than 200 later accrued
 Cf. Online radio: in the past years, about 800 channels were suspended per year
6

7. 2012: 1,424 German online-TV channels:
Corporate TV division rising since 2010
Share of different types of online-TV services in %
0% 10% 20% 30% 40%
31% Online TV channels
34% (Internet-only)
Online sub-brands
29%
of print and radio
31% media
17% Online sub-brands
16% of TV channels
11% 2012
Corporate video/
8% 2010 video shopping
5% Non-commercial
4% online TV channels
4% Media and video
4% centers
2%
Video sharing
3%
0.4% Interactive
1% multimedia portals
Source: Goldmedia, BLM Web TV Monitor 2010 and 2012, rounding differences possible, Logos serve only as examples
7

8. 3/4 of the videos provided are in-house
productions of the online-TV channels
Content sources/production types of online-TV channels 2012* Key facts
 On av., the video portfolio
of an online-TV channel
Produced by consists of 78 percent of
cooperation/ in-house productions
trade partners
13%  On av., 4 percent of the
content are videos
produced by users
Produced by users  Online-TV market gains
4%
professionalism, which
means providers
Produced by other increasingly rely on
suppliers trustworthy and
5%
professionally produced
In-house videos since they offer
production better marketing
78%
opportunities
 Cooperation with news
and other agencies is still
* Without YouTube
Source: Goldmedia, BLM Web TV Monitor 2012, n=198 out of 1,424 services important
8

9. 2012: About 6 billion hits per month – share
of video hits has grown to 17% since 2011
Video hits per day (in millions) of the recorded online-TV services in Germany
451
166 194
151
2010 2011 2012 2016*
* Prediction according to estimation of the providers. Source: Goldmedia, BLM Web TVMonitor 2010, 2011, 2012
Picture: Fotolia_36404518_S_© nabihaali - Fotolia.com_Foto Filmrolle
Key Facts
 Increase of video hits to 17 percent from 2011 to 2012, according to the estimation of the
onlineTV channels, 451 million hits per day and consequently a CAGR of 20 percent expected by
2016 (94 percent of the providers expects a rise of hits to 220 percent on average until 2016, 6
percent expect a stagnation in video outreaches)
 2012: 86 percent of the hits were from Germany, 14 percent were from abroad
9

10. 2012: Average viewing duration of 11 min.
per video. For live-streaming, even 28 min.
Evaluation of the responding online-TV providers:
Key facts
development ø-viewing duration in min. per hit*
Question: “How long are your videos used per hit (continuous use of a  In 2012, the ø viewing
video) on average and which development do you expect?“ duration per video hit
increased by 2 minutes for
VoD and by 3 minutes for live
40
streams compared to 2011
34  Providers expect a further rise
Average viewing duration per hits in minutes
35
to 16 and 34 min. per hit.
30 28
That would correspond to a
25 CAGR of 12% and 6%
25
between 2011 and 2016
20
 However, the actual average
15 viewing duration in the total
16 market should be lower
10 according to Goldmedia‘s
11
5 9 Live stream
Live-Stream
Stream estimation, since there is still
Video on Demand
a strong dominance of short
0 clips on the side of the
2011 2012 2016 provider. UGC content is also
*Merely evaluation of the survey answers, no emphasis on hits
being hit
Source: Goldmedia, BLM Web TV Monitor 2012, n=198 out of 1,424 services
Picture: Fotolia_36404518_S_© nabihaali - Fotolia.com_Foto Filmrolle
10

11. 2012: Every fifth online-TV hit via mobile
devices – five percent via smart TV
Devices used for hits of online-TV content 2011, 2012 and
Key facts
2016
 In 2012, 23 percent of the
total online-TV hits occurred
PC/Laptop via mobile or devices
connected to TV-sets
46% PC /Laptop
 In 2016, the number is going
to more than double
according to estimations of
77% the online-TV channels
87% übersmart TV/video
via Smart TV/
game consoles/
Spielekonsolen/  Rise in use esp. through
16% Apple TV etc.
Apple TV etc. increasing spread of devices
in user households
 Partly providers whose
growth in outreach in 2012
übermobile devices
via mobile Geräte resulted exclusively from the
5% 38%
increasing use of smart TV
2% +
18%  Esp. due to differentiated
11%
solutions for digital encoding
the app launch of a number
2011 2012 2016 of online-TV channels is still
Source: Goldmedia, BLM Web TV Monitor 2012, n=198 out of 1,424 services expected
11

12. 2012: Every second online-TV channel
retrievable via apps or mobile-optimised sites
Share of online-TV channels, which provide mobile apps/websites*
Question: “Do you offer a
mobile app/an optimised
website for mobile devices 51.0%
for your online-TV service?”
12.7%
+
2011 2012
*Merely evaluation of the answers of the survey, no emphasis on hits
Source: Goldmedia, BLM Web TV Monitor 2011, n=166 out of 1,418 services, Goldmedia, BLM Web TV Monitor 2012, n=198 out of 1,424 services
Picture: Ivo_Berg_2012
12

13. 23% of the channels already provide their
own smart TV app – 26 percent are planning to
Presence of the online-TV providers on smart TV Key facts
platforms 2012
 Approximately one in five
Question: “Do you already offer your online-TV service via smart TV online-TV provider is already
platforms and do you plan to use these platforms?“
present on smart TV portals
 Due to more and more IP TVs
Yes, already being sold, a smart TV app is
Not yet available
decided increasingly attractive for
23%
38% online-TV channels
 But, current device producers
on the market have very
different solutions. Therefore,
there are barriers, esp. for
small providers
 Established TV brands regard
themselves as value added for
platforms, while platforms
No, but
planned
partly demand money for
No, not even 26% admission to the portal
planned  Usability is not fully developed
13%
yet
Source: Goldmedia, BLM Web TV Monitor 2012, n=198 out of 1,424 services
Picture: Fotolia_42653760_S_© guukaa - Fotolia.com_Smart TV Icon
13

14. Hits via own website are declining –
social networks on the rise
Distribution of hits via different platforms for online TV
Key facts
2011, 2012 and 2016*
Miscellaneous  In 2011, almost 3/4 of all video
8% 8% 10% sonstige Wege
1% 1% ways hits of the online-TV channels
6% 9% 2%
occurred via their own website
11% Other social
andere soziale
13% networks
Netzwerke  By 2016, online-TV providers
15%
Facebook
Facebook expect a decline to 61 percent
16%
 Social networks, esp. YouTube,
YouTube
Youtube are becoming increasingly
important, in 2016 they will
Website
Website generate about 30 percent of
the total hits
72%
67%
61%  In 2016, one in10 hits will
*regardless whether they occur via other ways, such as
occurred via stationary or
mobile devices
co-operating platforms and
networks (also apps)
 For the providers themselves, it
is important to be present on
2011 2012 2016 all platforms
Source: Goldmedia, BLM Web TV Monitor 2012, n=198 out of 1,424 services
14

15. Advertising and marketing still main
sources of financing for online TV
Online TV‘s business models 2012
Share of fee-based services in %
0% 20% 40% 60% 80% 100%
Media and video centers
Mediathek/Multi-Channel-Portal 57% 20% 23%
Partially Other/unassigned
Sonstiges/Nicht zuzuordnen 86% 14%
fee-based
Corporate TV Corporate TV 89% 5%6%
3%
Free Video shopping Videoshopping 94% 6%
95%
Online-TV service (Internet-only)
Web-TV-Angebot (Online-Only) 96% 2%2%
Sub-brands of TV channels
Submarke klassischer TV-Medien 98% 2%1%
Fee-based
2% Non-comm. Online-TV channels
Nichtkommerzieller Web-TV-Sender 99% 1%
Sub-brands of print media
Submarke klassischer Print-Medien 99% 1%
Video sharing platforms
Video-Sharing-Plattform 100%
Submarke klassischer stations
Subbrands of radio Radio-Medien 100%
Interactive Kommunikationsportale
multimedia portals 100%
Source: Goldmedia, BLM Web TV Monitor 2012, 1,424 services free
Kostenlos Partially fee-based
Teilweise kostenpflichtig fee-based
Kostenpflichtig
15

16. Three out of five online-TV channels financed
by advertising, particularly by video ads
Ad-supported online-TV services 2012
“Do you offer advertising in Average share of types of advertising
accordance to your online-TV according to total online ad revenue
service?”
In-text
advertising
20.9%
Online video Keyword
advertising Marketing
Unavailable 36.5% 5.3%
39%
Available Sponsoring
61% 1.5%
Affiliate
Display
Marketing
advertising
0.4%
28.8%
Soruce: Goldmedia, BLM Web TV Monitor 2012, n=198 out of1,424 online-TV services
Key facts
 95 percent of all recorded online-TV services are free, 61 percent are financed by advertising,
which means one third are financed by alternative sources, partly by marketing budgets
 On average, video ads contribute 37 percent to the total ad revenue
16

17. Web TV Monitor 2012
Executive summary – part 1
Online-TV  1,424 online-TV channels in Germany (status as of 10/2012)
market in  Growth of 0.4% up until 2011 (churn: 200 p.a.)
Germany  At least 46 percent are sub-brands of conventional media, 17% of TV
 Corporate TV: increasing provider numbers; declining share of Internet-only
channels and sub-brands of print media in the total market
 On average, 78% of the videos of an online-TV channel are produced in-house
 Professionalisation of the online-TV industry: more and more trustworthy and
professionally produced content due to better marketing possibilities
Usage  Rise of daily video hits to currently 151 million hits (status as of 10/2012)
 Between 2010 and 2012, the daily increase of hits is 13%; in 2016, 451 million
daily hits are expected – rise in use infringing all platforms; however, VoD
stronger than linear online-TV
 Also the average viewing duration increases to 11 min. for VoD and to 28 min.
for live-streaming; further growth expected
 Increase in outreach in 2012 partly not due to additional users of a website but
esp. due to the distribution of additional portals, platforms and technical
devices in user households  significance of channel websites decreases in the
future, social networks/apps gain in importance
 Esp. at live sports events (Olympic Games, European championship 2012)
providers achieve new records with live streaming and catch-up TV
17

18. Web TV Monitor 2012
Executive summary – part 2
Use of  2012: Hits via mobile devices rose to 18%, smart TV to 5% of the total hits,
devices expected total growth of 53% by 2016
 51% of the online-TV channels with a mobile and 23% with smart TV app
 For a number of online-TV brands the app launch is still expected, delay due to
partially demanding solutions for digital encoding
 2/3 of the channels expect a shift of use dominance from the stationary to the
mobile distributive channel
 German online-TV channels: cost coverage of 71%
Economic  95% of all online-TV channels are free; merely 61% are ad-supported;
situation alternative financing partly by marketing budgets of the channels
  Brutto ad revenues of online video: 195 million € in 2011 (according to OVK)
Zunehmende Smart TV Geräteausstattung in den Haushalten
  Most important ad revenue driver for online TV is online
TV-EPGS mit integrierten Web-TV-Sendern wird Nutzung weiter erhöhen video advertising
  Marketing possibilities growing due to increasing professionalization
Mit gemeinsamen Portal aller Web-TV-Sender würde Akzeptanz steigen
  However, the earnings of fee-based services werden
Klassisches Pay-TV könnte von Web-TV-Nutzung kannibalisiertwith an annual growth of 66% by
2016 have the highest growth potential
Trends  Households increasingly equipped with smart TV-sets
 TV EPGs with integrated online-TV channels will further increase in use
 Having a common portal, the online-TV channels’ acceptance would rise
 Conventional pay TV could be cannibalized by online-TV use
18

19. Hits and further information also available at
www.webtvmonitor.de
19

20. Goldmedia GmbH Strategy Consulting
Prof. Dr. Klaus Goldhammer | Christine Link
Oranienburger Str. 27 | 10117 Berlin-Mitte | Germany
Tel. +49 30-246 266-0 | Fax -66 | Info[at]Goldmedia.de
www.Goldmedia.com | www.webtvmonitor.de