VOD reaches a third of French consumers

Pascale Paoli-Lebailly ©RapidTVNews | 02-02-2012

The French VOD market has risen 10% over the last year in terms of revenues and now reaches 34% of video market consumers a new study from analyst GfK Technology and Retail France has revealed.
Paradoxically, the buoyant VOD market can’t hide other bad results, except for connected TV devices, and also shows that DVD players fell by 12%.
According to GfK, the French consumer electronics market which includes sales of smart TV, smartphones or PC globally stepped back 4.5 % last year. Losing €800 million revenues, they totalled €16.8 billion at year end.
“All indicators are on red,” commented Laurent Donzel, High Tech and Telecoms Director at GfK.
Flat TV sets sales were the most severely affected as they decreased 10% to €3.8 billion, even though French digital switchover, which was completed at the end of November 2011, has pushed viewers to buy new flat screens. GfK forecast that in 2012 the digital switch off “bubble” will explode and affect the sales of both TV and video players.
High-quality connected devices were the only ones to stay in high demand last year and forecasts suggest that tablets will rise to 3 million sales this year and pass the €1 billion revenue mark. Smartphones should reach 13.9 million units sold, up 22% compared with 2011.
More than TV, these two segments will become the consumer electronics market key drivers. That said, overall the French consumer electronics market is predicted to decrease by 7%.