TeraVolt market analysis sheds light on German OTT market

TeraVolt, a Qvest company, has carried out market analysis shedding light on the evolving and increasingly expensive world of streaming.

To avoid missing out, payment is necessary. Users often encounter paywalls within a streaming platform, prompting them to subscribe to additional services in order to access all desired content. This complexity drives up overall costs for consumers. Since mid-2022, the expenses associated with accessing all major sports and entertainment offerings have surged by nearly 25%.

This trend is set to continue, as further price hikes have been announced or are anticipated, especially for those seeking ad-free, high-quality viewing experiences in sports, films and series.

Bundles have emerged as a savvy solution to combat these rising costs. Providers such as Telekom, Sky, Vodafone, waipu and O2 offer bundles that can potentially save consumers several hundred euros per year. This strategy effectively counters the trend of rising subscription fees for premium products, as many providers now introduce advertising-supported packages as more affordable entry-level options. The market is thus increasingly bifurcating into cost-effective, ad-supported and more expensive premium tiers. The challenge for consumers in this transforming TV industry is getting more and more complicated. How to navigate through this expanding forest of options?

“In the new TV reality, viewers are challenged to balance complexity, cost and content. The industry must adapt to offer more streamlined and cost-effective ways for consumers to access the diverse range of content they desire. Ad-based product tiers are an important part of the solution here,” said Tobias Künkel, CEO of TeraVolt.

“In this era of streaming abundance, TV platforms have a more important role than ever. As viewers grapple with a dozen choices they provide aggregation, curation and guidance.”

TeraVolt’s analysis for 2023 includes established services like Amazon Prime Video, Netflix, Disney+, Apple TV+, Sky, and DAZN, as well as RTL+, Joyn, MagentaTV, YouTube Premium, DYN, Paramount+, Discovery+ and the Rundfunkbeitrag.

Read the full report here.