Western Europe smashes through 100 million digital homes barrier

The Rise and Rise of Digital TV

New research published today by Informa Telecoms & Media shows that digital TV penetration of Western European households broke the 50% barrier in 2007, ending the year at 54%, up from 42% at end-2006. The 12th edition of Informa’s Western European TV report forecasts that digital homes in the region will reach 104 million by the end of 2008, rising to 157 million by 2013, equivalent to a 90% penetration rate.

Top 5 markets: Digital TV households (000):

             2007      2010      2013
           ------    ------    ------
Germany    15,300    24,361    30,439
France     18,017    24,328    26,992
UK         22,268    25,110    26,459
Italy      11,037    17,635    23,811
Spain       8,207    13,379    17,903
Others     13,932    23,863    31,204
           ------   -------   -------
Total      88,761   128,676   156,808

Source: Informa Telecoms & Media

Despite the rosy picture, full digital conversion is only expected in four (Finland, France, Ireland and the UK) of Western Europe’s 15 major broadcast countries. Adam Thomas, Informa’s Media Research Manager, said: “While cable will remain the region’s leading pay TV platform, the satellite subscriber base is eating into its dominance. Satellites much higher ARPU levels mean it will overhaul cable in revenue terms during 2009.”

Cable is also expected to lose its position as the leading platform, when digital terrestrial TV (DTT) overtakes it in 2011. According to Thomas: “DTT often provides a similar channel line-up to analogue cable, usually for no monthly fee, so will benefit from churning cable customers. IPTV is also using attractive triple-play bundles to tempt away cable subscribers.”

The UK is currently the most prominent digital market, accounting for 25% of the region’s digital TV homes, followed by France with a 20% share and Germany with 17%. The UK’s dominance has begun to wane though, as other markets show improved digital growth rates and by 2013 Germany will lead the way with 19% of the total.

Western Europe: Digital penetration of TV households in 2013 (%)

          Cable    DTH   IPTV    DTT  Total
          -----  -----  -----  -----  -----
France       12     22     18     46    100
UK           12     37      6     39    100
Italy         0     24      9     57     95
Spain         8     12      7     67     94
Germany      22      6      7     13     76
          -----  -----  -----  -----  -----
Total        20     18      9     34     90

Source: Informa Telecoms & Media.

The 400-page report Western European Television (12th Edition) is published by Informa Telecoms & Media. For Further Information, please contact: Adam Thomas, Media Research Manager, adam.thomas@informa.com, +44 (0) 207 017 4274