• by Wayne Friedman , September 14, 2007

European TV consumers will get their share of new digital platforms for their video content--but it will come at a slower pace than for U.S. viewers.

A new study by the media and business consultant, Bain & Co., says that only 20% of Europeans will be viewing video through on-demand services in five years. Bain notes the alternative digital distribution business of viewing video content business is growing slowly--by 4% to 6% per year.

That's because European viewers still see traditional TV as a leisure activity where they can 'lean back' and relax versus the 'lean forward,' less relaxing Internet and computer activity, according to a study called "The Digital Video Consumer: Transforming the European Video Content Market." That said, the study says 'on-demand' services on traditional TV, offered by new cable or IPTV providers, will continue to grow. Though younger European Web users are viewing more video on the Internet, a Bain study says this trend will be slow through 2012. Most of its effect will not be felt for at least 10 to 15 years.

It's not just users, but Internet content creators that are conservative with respect to new digital video platforms. The study says content creators are unlikely to promote Internet-based on-demand platforms at the expense of television-based platforms.

At the same time, it recommends that content creators should not take a laid-back attitude to digital video business growth. The study says they should look for new sales models for the Internet--not just ad-supported video--but selling directly to consumers in pay-for-play models.

For content aggregators the goals, according to Bain, are to make it easy for viewers to find their programs in the big sea of the Internet--as well as offering quality programming and establishing consumer loyalty.

The study also doesn't see European Internet usage as cannibalizing TV viewing today. It says the average European TV viewing is over 3.4 hours per day, and still growing in most European markets.