European pay TV revenues plateau

European pay TV revenues are expected to increase by just 0.6% this year as ARPUs (average revenue per user) are hit by competition and subscribers move to double-play and triple-play bundles, according to Digital TV Research.

Forecast to reach $40.4 billion in 2014, the main contribution to pay TV revenue in Europe will come from Sky (45.6%), however the research reveals that satellite TV revenues are falling – partly due to greater competition but also due to the growth of cheaper packages.

Pay TV revenues in Western Europe are expected to increase by 6% from $32 billion in 2010 to $34 billion in 2014, with Eastern Europe up by 32.2% to $6.5 billion.

The UK and Germany will lead pay TV revenues this year, generating $7.8 billion and $4.6 billion, respectively.

Pay TV subscriptions are expected to increase from 155 million in 2010 to 172 million by the end of 2014, while digital TV penetration will reach 82% of European households by the yearend.