Boom Years Ahead For Subscription TV

Revenues from subscription TV in Europe will increase by more than 25% over the next three years, according to Informa Media Group.

The study, European Television – Seventh Edition reports that subscription TV revenues broke the $20 billion barrier in 2002. Growth has been significant since 1995 when revenues totalled $6.2 billion and the $10 billion mark was surpassed as recently as 1998.

Informa forecasts that revenues will increase from $20.1 billion to $21.8 billion this year. The UK is expected to account for 23% of the total, with Germany at 21% and France at 12%.

By 2005, it is estimated that the European subcription TV market will be worth in excess of $25 billion but the real growth will occur in the latter years of the decade with revenues expected to climb to $36.7 billion in 2010. The UK and Germany will each provide 20% of the total with France again contributing 12%.

It is anticipated that cable subscribers will account for 56% of turnover in 2010 with DTH bringing in 38% and DSL 7%. Revenues per subscriber are forecast to rise by $73 between now and 2010 as interactive services become more widely available. In addition, PPV and VoD movies which raise $1.3 billion or 6% of all subscription revenues, will increase their share of the market to 10% ($3.8 billion) by 2010.

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