As the year-end holiday season approaches, we are revealing the key findings of Groupe BPCE’s Payments Observatory1 to better understand French consumption patterns in digital entertainment (films, series, music, books via digital platforms, and video games).
The study shows a peak in consumption in 2020 of 50% for digital entertainment (compared with 2019) as well as a 20% increase in spending and 37% in transactions between 2020 and 2021. Video streaming and VOD as well as video games top the list of most consumed products and services.
37% increase in digital entertainment transactions versus 2020
The survey highlights a fundamental trend of increasing digital entertainment consumption in France with a 33% increase in spending between 2019 and 2020 and 20% between 2020 and 2021, even though it was thought that the trend would run out of steam.
This growth has been driven especially by video streaming and VOD with a 26% increase in consumption between 2019 and 2020 and 7% between 2020 and 2021. As for video games, while the sector peaked in 2020 during the lockdowns (27% increase in spending in 2020 compared with 2019), the fact remains that spending increased by 12% between 2019 and 2021, confirming a real growth trend in the video game market.
The survey highlights a fundamental trend of increasing digital entertainment consumption in France with a 33% increase in spending between 2019 and 2020 and 20% between 2020 and 2021, even though it was thought that the trend would run out of steam.
This growth has been driven especially by video streaming and VOD with a 26% increase in consumption between 2019 and 2020 and 7% between 2020 and 2021. As for video games, while the sector peaked in 2020 during the lockdowns (27% increase in spending in 2020 compared with 2019), the fact remains that spending increased by 12% between 2019 and 2021, confirming a real growth trend in the video game market.
The difference between video streaming/VOD and video games (+36% in 2 years for video versus 12% for video games) can be attributed to very distinct business models: video streaming and VOD rely primarily on a subscription system, with new customers who guarantee long-term revenue, while video games are more “one-shot” purchases.
Another interesting finding is the fluctuation of spending based on seasonality. Digital entertainment consumption (excluding the lockdowns) was fairly stable at the beginning of a year, with an increase of 25% to 40% higher than in the other months of October to December, which could be explained by the year-end holiday season. The 2020 figures require a little more perspective, with spending increasing by nearly 60% between September and December 2020. This increase could also be explained by the implementation of a curfew for several months.
While the average shopping basket has been relatively stable over the past three years, hovering around €15.50, it has fallen 12.9% to €13.48 in 2021 (compared with the previous year). This figure can be explained by the increase in the number of transactions.
While French digital entertainment spending saw a substantial boost during the first lockdown, it is still constantly increasing with significant growth in 2021, marking its presence in French consumption patterns.
More than half of spending attributable to the under-35 age bracket
Younger people are the sector’s leading spenders: more than a quarter of digital entertainment spending is attributed to consumers under the age of 24 and 54% under 35. More specifically, while consumers between ages 25 to 44 are the biggest spenders in video streaming and VOD, consumers under 24 are the biggest spenders in the video games sector, representing 36.4% of spending in October 2021 compared with 26.8% for consumers between 25 and 34 and 18.4% between 35 and 44. Here again, the consequences of the business model of streaming platforms and video games can be seen: these figures can be explained quite easily by the greater means of consumers between 25 and 44, involving long-term spending with monthly subscriptions, as well as a higher priority given to this connected consumption compared with other spending categories.
Video games appeal more to a young, male audience, with men representing 77% of spending, with consumers under 25 as the top spenders (36%). Video streaming and VOD are becoming increasingly popular. Spending in these areas is balanced between men and women. The top consumers are between ages 25 and 44 (50%), with those ages 25 to 34 at the top. However, there was a more significant development for women with an 8.6% increase in the amount spent compared with 2020 versus 4.8% for men and a 10.4% increase in transactions compared with 5.9% for men.
According to Ludovic Houri, CEO of Dalenys, “Digital entertainment has achieved remarkable growth over the past two years. The video game and video streaming/VOD sectors performed well during the lockdowns, and it’s very interesting to see the trend continuing. The French have changed up their consumption patterns, becoming more regular, which is good news for this very promising sector".
1 Data for January to October 2021. Groupe BPCE is the leading issuer of Visa cards in continental Europe. The payments Observatory processes anonymised data from its ecosystem to identify and analyse trends, which are then highlighted with the BPCE community. It sheds light on consumer trends and patterns related to the world of payments.
