Kagan Releases Study on European Multichannel Households

MONTEREY, May 4: A new report from SNL Kagan shows that cable television currently dominates the European multichannel landscape— accounting for 69 percent of the total multichannel subscriber base—and predicts that the number of multichannel television households in Europe will reach 170 million by 2016—growing at a 3.9 percent compound annual growth rate (CAGR).

The report, titled European Multichannel Markets, tracks the evolution of multichannel TV in 27 countries across Western, Central and Eastern Europe using a 10-year financial model that breaks down each market by cable, satellite, fixed wireless, IPTV, DTT and pay-DTT platforms. According to the report, at year-end 2006, there were 265 million TV households in the 27 countries examined, 116 million households (43.7 percent) of which are subscribed to multichannel television.

The report found that at the end of 2006, there were 80 million basic cable subscribers, accounting for 69 percent of the total multichannel subscriber base. The report also found that in 2006, the DTH platform generated $15 billion in subscription revenues, making up 51 percent of the total multichannel economy. DTH’s broad programming options and digital service warrant higher subscription fees, thereby producing a higher share of revenues. By 2016 SNL Kagan also predicted that there would be 1.2 million fixed wireless households generating $232 million in subscription revenues.

Although still an emerging technology, IPTV also has the potential to fundamentally alter European multichannel competitive dynamics. By 2016, Kagan projects that European IPTV services will generate $4.9 billion in subscription revenues—experiencing a 26.5-percent CAGR—and accounting for 8 percent of the total multichannel economy.