Digital TV In Western Europe Up 25% In 2005

Commenting on the findings, Adam Thomas, author of the Western European Television report said: “The future is increasingly bright for digital TV in Europe. The cable and satellite sectors are reaping the benefits of consolidation and debt restructuring and this has resulted in stronger companies that have the resources to upgrade their networks and fully market their services.”

The UK is expected to lead Western Europe in terms of digital television penetration, predicted to account for almost 35% of the region’s digital total by the end of the year. France is forecast to enjoy a share of 15.3%, with Germany and Italy both at 13.7%.

Despite being estimated to add more than five million digital subscribers from the 2005 figure, the UK is predicted to drop to 21.6% of the total digital penetration by 2010, with Germany forecast to overtake it, increasing its share to 25%.

Informa forecasts digital penetration to reach half of western European television households by 2008, cable TV having a 26% share by the end of 2010, DTH and DTT at 20% and 13% respectively. Internet Protocol television (IPTV) will be present in 6% of the region’s television households.

IPTV’s strong growth is attributed to rapid advances in digital subscriber line (DSL) penetration, with Informa predicting high profile launches within the area in the second half of 2005 and 2006.

Earlier this year, Microsoft completed a series of deals with telecoms operators in Western Europe and the US meaning 75% of fixed phone lines will use Microsoft software to access television services via broadband (see The Future Of Television – IPTV).

The deal, thought to be worth at least an initial $10 billion, has ensured that Microsoft’s software will dominate the world of converged broadband internet and television.

New services coming to the market, such as on-demand television and PVRs are also having an affect on the digital arena, with new research from Ipsos revealing that almost one in ten people in digital homes own a PVR (see UK PVR Uptake On the Rise).

The UK has adapted well to the new technology, with Ed Richards, Ofcom’s senior partner for strategy and market development saying: “Digital television is growing at the rate of 250,000, the population of Sheffield, every month and now for the first time ever, more people are accessing the internet through broadband than narrowband (see Ofcom Strategy Chief Predicts An On-Demand Future).”

Speaking at the first Ofcom Annual Lecture to the Westminster Media Forum, Richards highlighted the growth of on-demand television, saying: “In many countries television over DSL is already well advanced; in this country HomeChoice are already offering an attractive service to 15,000 users. In Italy, Fastweb has more than 150,000 TV over DSL subscribers. In France, Neuf and Free together have around 350,000 TV over DSL, triple play subscribers. It is a liberation of consumers, viewers and listeners to determine their own viewing, their own listening, their own schedule, their own compilations, their own content and even their own services.”