There are a total of 24 million digital pay TV subscribers in Western Europe and this number is set to double over the next five years, according to a new report from IDC.
The study,
Digital Television Services in Western Europe: Forecast and Analysis, 2002-2007 examines the progress of the DTV market in the 16 European member states and notes that penetration levels vary considerably.
“Whereas countries like the UK, France and Spain have managed to achieve high levels of DTV subscriber take-up, there are still countries that are lagging behind in the take-up of DTV services, such as Germany, the Netherlands and Belgium,” commented Nicky Walton, research analyst with IDC’s European Telecommunications Services program.
A recent study from the Informa Media Group found that Europe accounted for one third of the world’s digital subscribers at the end of 2002 (see Digital TV Approaches 100 Million Homes). IDC claims that there will be 49 million digital subscribers in the western half of the continent by 2007 although its share of the world market will decline as growth rates accelerate in Asia.
IDC says that satellite remains the primary driver of subscriber take-up, with cable and DSL providing limited competition in most of Western Europe. The most notable development has been the consolidation among operators which is forecast to lead to a rise in pan-European players operating across multiple regions and countries.
An increase in vertical and horizantal integration among media companies and telcos is also anticipated. The report says that the only way to counteract this will be to address the cost of content and introduce legislation to encourage new entrants and competition in developed markets. Nonetheless, the digital tide is rising and the medium should have a profound effect within and beyond the media environment.
“Broadcasting has a cultural importance that is different to telecommunications and other forms of content delivery as it is far more ubiquitous and influential,” said Walton. “The expansion of DTV is finally having the necessary and deep-seated impact that is required in relation to the development of economic policy decisions, as well as influencing social and media policy relating to the production and deployment of indigenous content.”
