MIPTV: Vivendi’s Dominique Delport Shares Insight on Millennials, SVOD, Euro Content Biz

A day after unveiling Studio Plus, the first offer of mobile-native, short-format premium series at MipTV, Vivendi Content’ boss Dominique Delport delivered a data-packed keynote, sharing intel on the SVOD business compared with traditional TV, the importance of thinking mobile-first to target millennials and the need for more powerful European distribution platforms.

In his keynote titled “The future is in your palm,” Delport, who also service as global managing director for advertising outfit Havas Media Group, said that while SVOD represented 20% of total viewing time in the US, it only drew 4.7% of the revenues — and only 2.3% in Europe.

“If content is king, is SVOD its new emperor? My take on this: Look at the numbers. The cable business is a 100 billion dollars in the US. The advertising market on TV is a 70 billion dollar business. SVOD is still a 5 billion dollar business. Two giant and a dwarf,” Delport quipped.

The exec pointed out 50% of SVOD subscribers around the world also have pay TV subscription, which makes SVOD is a pay TV complement, not yet a substitute.

Delport emphasized the pressing need for Euro companies to forge alliances, build strong Europe-based global distribution platforms that can rival U.S. and Asian media powerhouses which fully dominate the world market. The topper cited Google, Apple, Facebook, Amazon on the U.S. side, and Baidu, Alibaba and Tencent in Asia.

The French media honcho predicted 2020 will see a big shift with the end of analog TV which will open the door for Google, Apple, Facebook, Amazon to play in the content distribution business.

“Today, we spend 50% of our digital time with these four usual suspects (Google, Apple, Facebook, Amazon). They represent 1.5 Trillion dollar market capitalization,” said Delport, arguing that Europe needs its own global giants to preserve its diversity and cultural relevance.

Speaking of the predominance of mobile consumption among millennials, Delport said Vivendi Content has just invested 25 million Euros to roll out Studio Plus to anticipate the demand. “It’s a gamble but mobile is the first screen for the millennial generation. Out of the 2.5 billion smartphones users in the world, 60% watch shows daily. And yet, there is no premium content that is made for mobiles first.

Studio Plus aims to first reach 600 million consumers with a launch in 20 countries and in six languages this fall.

Vivendi Content designed the app with worldwide telco operators aiming to bolster and expand their subscribers base. Delport said Studio Plus aimed to strike a deal with a U.S. telco by the end of the year. Vivendi has relationships with various international telcos, such Telecom Italia and just recently Mediaset.

Studio Plus has already triggered the interest of big brands but Delport said their involvement would have to be subtle as the service is not seeking to produce branded content.

Wrapping up the session, Delport said the idea of being ahead of the curve in pioneering a new format for mobile – the 10 x 10 — and turning it the norm in the coming years would spell success for Vivendi Content’s Studio Plus.

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