Media Week Report – March 29, 2019

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This week, the Media Week Report gives pride of place to Apple, which unveils its highly anticipated Apple TV + video subscription service, and the European copyright reform adopted on Tuesday by the European Parliament. In France, while the communication market returns to its pre-crisis level in 2007, the advertising market is boosted by digital growth.

Apple TV +, the long-awaited video subscription service from Apple, is aimed primarily at customers of the brand

As part of the AppleEvent, Apple unveiled the long-awaited Apple TV + video subscription service – alongside other high value-added services that should help him, according to Meta Media, at increase its average revenue per user (ARPU) and regain growth (like the Apple TV app, new formula, which becomes available on a multitude of new platforms ; Apple TV Channels, a subscription service to third-party content channels; Apple News +, an online press subscription service; and Apple Arcade, a service giving access to over 100 exclusive games).

Available this fall in more than 100 countries, Apple TV + – whose rates are not yet known – will feature exclusive series produced by Hollywood stars like Steven Spielberg, J.J. Abrams, Oprah Winfrey and Jennifer Aniston.

According to Meta Media, Apple now wants to convince its own users – but also those of other platforms – to "subscribe to" and not "buy" one of its five new service offerings above, assuring thus recurrent income throughout the year. In addition, according to Les Echos, Apple's streaming offer – which has not planned to invest the $ 20 billion a year Netflix – is more for customers of the brand. For many analysts, the power of Netflix and the advance it has taken protects the streaming giant from relegation to the second division … in any case in the medium term.

For its part, Google has denied a rumor, launched by Bloomberg, according to which YouTube would have abandoned the idea of ​​original creations for its YouTube Premium service. According to a spokesperson for YouTube, quoted by The Vergeif both series Origin and Overthinking with Kat & June have been canceled, YouTube's plan to create high quality original content remains unchanged; what's changing is YouTube's strategy to monetize these contents – the company now seems to bet, not on subscriptions, but on advertising.

The new edition of the international study DIMENSION, from Kantar Media, which comes out on April 9th, deals with the issue of media business models with the rise of the subscription.

Facing the Gafa, Europe persists and reform the copyright

After intense negotiations with lobbies on all sides, MEPs approved on Tuesday 26 March the European copyright reform, much awaited by the press and artists, but hated by the Gafa and the defenders of freedom on the Internet. Adopted by 348 votes to 274, the new text intends to adapt to the digital age the European copyright law, dating from 2001 … A time when YouTube, held by Google, did not exist yet, explains Le Figaro.

The result of a hard-won compromise between the Commission, the Council and the Parliament, the reform aims to create a "Neighboring right" copyright for newspaper publishers, allowing the media to be paid by web giants or social networks. It should also strengthen the bargaining position of creators and rights holders against platforms like YouTube or Tumblr, which use their content, explain The world and The echoes. Note: users are not directly targeted by this reform, recalls Europe 1.

Supporters of the text that has been adopted welcome a balanced reform and a historic day for culture and Europe, note ActuaLitté. The Minister of Culture Franck Riester thanked the deputies for this vote: " This directive includes decisive progress and marks a first step towards greater accountability of the platforms (…). The message from the European Union is clear: all the players involved in the European market must respect our collective preferences ".

States now have two years to transpose this text into national legislation, the directive leaving them a certain margin of appreciation as to how to meet the objectives of the text. It "binds each recipient Member State as to the result to be achieved, while leaving to the national authorities the competence as to the form and the means", reports Numerama. The reform has probably not finished talking about her.

Digital growth boosts the advertising market, while the communications market returns to its pre-crisis level of 2007

According to Unified Barometer of the Advertising Market published by Kantar Media, Irep and France Pub, the French communication market has recovered in 2018, to 33.3 billion euros, its level before the financial crisis of 2007.

Of this total, the media (web, television, press, radio, billboard and cinema) captured 12.2 billion euros (excluding directories, advertising mail and unaddressed printed matter), while so-called non-media markets (direct marketing , promotion, POS, PR, fairs and exhibitions, sponsorship) reached 18.7 billion euros, a stable amount over one year.

As for the media advertising market including digital, it amounts to 14.4 billion euros, up 4.2% compared to 2017.

This increase is mainly due to the growth of the Internet (+ 17% compared to 2017), which was driven in particular by social display (+ 63%) and search (+ 11%), according to the Observatoire de l'Epargne. SRI pub produced by PwC, in partnership with Udecam.

Growth also comes from television, with the TV advertising market up 2.4% compared to 2017, "particularly thanks to the excellent performance of sponsorship and digital," says Kantar Media.

Source: Kantar Media