Advanced Television Services Set To Take Off
Despite the well documented failures of ITV Digital and Quiero, European consumers will spend E13.4 billion on digital and interactive television services in 2002, an increase of 31% over last year, according to Strategy Analytics.
“Consumers are clearly unaffected by the doom and gloom within the digital TV industry,” said BES director Nick Griffiths. “They continue to demand better television, and demonstrate a clear willingness to pay for it.”
In the short term, established satellite broadcasters such as BSkyB and Canal Plus are in the best position to exploit the growing demand for digital services. According to Strategy Analytics, revenue from satellite platforms will reach $9.8 billion and rise to $23.8 billion in 2008. However by this stage, cable is expected to have taken over as the leading platform, accounting for 45% of revenues.
As the following table shows, interactive services are still in their infancy but revenues are expected to surge throughout the rest of the decade.
| European Interactive Television – Consumer Revenues ($ million) | ||
| Revenue Sources | 2002 | 2008 |
| TV Messaging/Email | 10 | 234 |
| TV Betting/Gambling | 10 | 64 |
| Interactive TV Games | 36 | 448 |
| Enhanced TV | 35 | 712 |
| Other iTV Revenue | 1 | 26 |
| Total | 92 | 1484 |
| Source: Strategy Analytics, August 2002 | ||
