Flat Growth for European Pay-TV Revenues

June 11, 2014 World Screen Top Stories

LONDON: European pay-TV revenues are expected to reach $40.35 billion in 2014, up just 0.6 percent on 2013, according to a new report from Digital TV Research.

Satellite TV is forecast to account for 45.6 percent of the pay-TV revenues in 2014. Though due to greater competition and the growth of cheaper packages, this segment is declining. Pay DTT revenues are also taking a hit, however IPTV is set for record revenue growth. Digital cable revenue growth is expected to help offset the decline in analogue cable revenues.

In Western Europe, pay-TV revenues are forecast to increase by 5.9 percent, from $31.9 billion in 2010 to $33.8 billion in 2014. In Eastern Europe, the figure will rise 32.2 percent to $6.5 billion. The U.K. is set to lead pay-TV revenues this year, with $7.8 billion, followed by Germany, with $4.6 billion. In Germany, pay-TV revenues are poised to increase by $945 million in the four-year period from 2010 to 2014. In Russia, revenue will nearly double for that same period, increasing by $813 million. Revenues are expected to decrease in the Czech Republic, France, Malta, Romania and Spain.

Pay-TV subs will increase to 171.6 million by the end of 2014, up from the 154.5 million reported in 2010. The total in Western Europe will rise by only 4 million, to 97.3 million. Eastern Europe, however, will increase by 13.1 million, to 74.4 million. Russia has long had the most pay-TV subscribers by country, and is set to add 8.5 million subs between 2010 and 2014. The number of pay-TV subscribers is forecast to decline in the Czech Republic, France, Italy, Slovenia and Spain.

Digital TV penetration is set to reach 81.9 percent of European households by the end of this year, up from 60 percent in 2010. In total, Europe will have 240.3 million digital TV households by end-2014, up by 12.7 million in the last year. Free-to-air DTT is the most popular platform, though its growth is slowing. Pay satellite TV is the second most popular. Digital cable overtook analogue cable in 2013 to enter third place.