Fifth of Europe's TV homes to subscribe to online packages by 2020

A fifth of European TV homes to subscribe to online packages by 2020

The number of European homes paying a monthly subscription to receive SVOD [subscription video on demand] packages will climb from 1.78 million in 2010 (0.6% of TV households) to 17.99 million by end-2014 (6.4%) and onto 59.41 million in 2020 (20.7%), according to a new report from Digital TV Research. The European Online TV & Video report forecasts that 6.8% of Eastern European TV households (11 countries) will subscribe to an SVOD package by 2020, compared with 29.7% in Western Europe (15 countries).

Online television and video subscription revenues (SVOD) will soar from $116 million in 2010 to $1,633 million in 2014 and onto $5,502 million in 2020. The UK will remain the SVOD revenue market leader, although Germany will be close behind by 2020.

European online TV and video revenues (over fixed broadband networks) will reach $12,872 million in 2020; up from only $923 million in 2010 and the $4,804 million expected in 2014.

The UK will remain the dominant territory for online TV and video revenues. However, its share of regional revenues will drop from 30% in 2010 to 20% in 2020. Italy will climb from only $66 million in 2010 to $1,237 million by 2020. Russia will grow from $20 million in 2010 to $874 million by 2020.

Online TV and video advertising revenues are expected to be $2,305 million in 2014, up from $663 million in 2010. Rapid advertising expenditure growth will continue, to reach a European total of $5,117 million in 2020. The UK will remain the market leader, with $1,175 million in 2020.

Online TV and video rental/pay-per-view revenues will still expand rapidly, climbing from $55 million in 2010 to $858 million in 2020. Download-to-own revenues are forecast to be $1,395 million in 2020, up from $89 million in 2010.