Eastern Europe Delivers on its Promise

Thursday, June 26th, 2008
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Potential of central and eastern European television now being fulfilled

New research from Informa Telecoms & Media has found that the long-held potential of central and eastern European TV markets is now being realized with significant revenue growth. Eastern European TV (12th edition) has discovered that the region’s pay TV sector was worth an impressive $5.6 billion in 2007, but is expected to more than double to $12 billion by 2013. When advertising revenues are added, the market will be worth more than $23 billion in 2013.

Adam Thomas, Informa’s media research manager, and author of the report, said: “The countries of central and eastern Europe already offer a wide range of attractive opportunities for international TV players and investors. And this positive environment will only get better, with a period of extensive merger and acquisition activity expected over the next few years.”

Eastern Europe: Pay TV revenues ($ million)

                   2007     2008
                 ------   ------
Czech Republic      468    1,165 
Hungary             313      735 
Poland            1,800    3,616 
Romania             454      815 
Russia              910    2,655
Rest of Region    1,702    3,004
                 ------   ------ 
Total             5,647   11,990

Source: Informa Telecoms & Media

The region is also making good progress in upgrading networks to digital TV. The research has found that the 22 million digital homes at present will grow to 35.7 million by 2013. According to Thomas. “Digital satellite has led the way so far, with cable slower off the marks towards digital conversion. But with IPTV making some inroads in the region, there is evidence of cable now looking to upgrade with greater urgency.”

Eastern Europe: Digital TV homes (000)

                   2007     2008
                 ------   ------
Czech Republic    1,184    4,968 
Hungary             767    3,342 
Poland            3,962   11,903 
Romania           1,036    4,525 
Russia            4,376   17,741 
Rest of Region   10,254   27,575 
                 ------   ------ 
Total            21,579   70,054

Source: Informa Telecoms & Media