VAUNET forecast for the German media market in 2019

Wednesday, October 23rd, 2019

For the first time, audiovisual media generate revenues of more than 13 billion euros in Germany

  • Rise in revenue of 579 million euros or 4.7 percent compared with the previous year
  • Income from both advertising and pay offerings contributes to growth
  • Economic and social relevance of radio, audio, TV and video offerings continues to grow

BERLIN — For the first time, audiovisual media in Germany will, according to the “Media Market Forecast for 2019” issued by the trade association for commercial media, VAUNET, realise a turnover of more than 13 billion euros during the current year 2019. The association is forecasting revenue growth of 4.7 percent or 579 million euros for the full year to reach a total of 13.02 billion euros, basing this forecast on the economic performance of all linear video and audio offerings, as well as those distributed as on-demand services. In 2018, media industry revenues already rose by 815 million euros (+ 7.0 percent) to 12.44 billion euros.

Development of AV media revenue in Germany - 2013-2019

Hans Demmel, Chairman of the Management Board at VAUNET, said: “The ongoing positive revenue performance on the part of Germany´s audiovisual media is an impressive reflection of this sector´s social and economic relevance. With its varied entertainment and informative offerings, it stands for a modern, creative and digital industry that creates social value added on a wide scale. As a result, it has firmly established itself alongside the major traditional sectors as one of Germany´s newer key industries.”

Frank Giersberg, Member of the Board of Directors responsible for Market and Business Development at VAUNET, said: “The growth drivers in Germany´s audiovisual media sector are mainly streaming and interactive offerings. Their revenue is showing particularly dynamic growth in both the advertising and pay markets. This development reflects the innovative strength and future potential of the industry.”

Video net advertising revenue in Germany - 2013-2019

Revenue from advertising

In the case of audio advertising (linear and non-linear), VAUNET anticipates overall net revenue growth of 3.6 percent to a new all-time high of around 864 million euros (growth in 2018: +2.6 percent). This includes expected growth of 2.0 percent up to around 805 million euros (2018: +0.6 percent) in radio advertising across the entire market for commercial and public service offerings. Growth of 30 percent is forecast for in-stream audio advertising, although at a much lower level, with revenue reaching around 59 million euros (2018: +55 percent).

In the case of video advertising (linear and non-linear), VAUNET is anticipating overall net growth of approx. 2.0 percent in 2019 to reach 5.24 billion euros (2018: +1.3 percent). In this sector, a slight 1.0 percent drop to 4.49 billion euros is expected for television advertising (2018: -1.2 percent), with an increase of some 25 percent to around 750 million euros being forecast for the in-stream video advertising segment (2018: +25 percent).

Audiovisual media revenue in Germany - 2018, 2019

This means that audiovisual advertising revenue in Germany will reach a record figure of 6.1 billion euros for the first time in 2019.

Revenue from pay offerings

Paid content revenue in the audiovisual media sector is expected to increase by 9.4 percent to around 4.81 billion euros by the end of 2019 (2018: +17.2 percent). In this context, pay-TV will be the segment generating the highest revenue, recording growth of around 4.0 percent to reach 2.39 billion euros (2018: +4.0 percent). Paid video-on-demand revenue is estimated to grow by 20 percent to around 1.44 billion euros (2018: +50 percent), with on-demand income from audio offerings rising by 9.0 percent to some 978 million euros (2018: +21 percent). The teleshopping segment also continues to grow, with VAUNET anticipating a 1.5 percent increase in revenue to around 2.10 billion euros (2018: +4.1 percent).