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Analysis

Western European Pay-TV Market Resilient Despite OTT Gains

Western Europe’s pay-TV markets are going from strength to strength, while growth is slowing for Netflix and other OTT services in the region, according to new research from Ovum. Ovum's Western Europe: Pay-TV & Free-To-Air Forecasts to 2021 report finds that there were 98 million pay-TV subscribers in Western Europe at mid-2016 and is forecasting that 7 million more will be added by the end of 2021, taking the total to 105 million.

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SVOD Spend to Reach €3 Billion in Western Europe

Total spending on SVOD in Western Europe hit the €2 billion mark ($2.24 billion) in 2015 and is forecast to reach €3 billion ($3.35 billion) by year-end 2016, according to a new report from IHS Markit. As existing services reach saturation in key markets, year-on-year growth in spending on online SVOD in Western Europe will slow into the forecast period (2016-2020), the report said. Even this slower increase in value generated from SVOD will be sufficient to make the platform the largest in terms of total home video spending.

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Growth Projected for Majority of Eastern Europe’s Top Pay-TV Operators

The Eastern Europe Pay TV Operator Forecasts report from Digital TV Research estimates that 44 of Eastern Europe’s top 64 operators will increase their subscriber bases between 2015 and 2021. Simon Murray, principal analyst at Digital TV Research, said: “So 20 of the top operators will lose subscribers—or 31 percent of the total. Perhaps this is not that unpredictable given that the region still had 24.5 million analog cable TV subscribers by end-2015.”

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German Pay-TV Revenues to Pass €3 Billion

Revenue from pay TV and paid VOD in Germany increased 12 percent year-on-year to €2.49 billion ($2.74 billion) in 2015, with a gain of 8 to 11 percent forecast for this year, according to VPRT, the German commercial broadcasters' association. In Germany, Austria and Switzerland, pay TV and paid VOD revenue totaled €2.7 billion ($2.97 billion).

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