European Pay-TV Revenues To Exceed Adspend In 2004
Television spot advertising expenditure in Western Europe will rise by 33% in real terms over the coming decade, according to a new report from ZenithOptimedia.
Advertising expenditure stood at $22.0 billion in 2003 and is expected to grow to $22.6 billion this year; by 2012 revenues should hit $29.5 billion, says the Television In Western Europe To 2012 report.
The wide-ranging study predicts that television spot advertising will remain virtually static as a percentage of the European economy over the forecast period, representing 0.24% now and rising to just 0.27% by 2012.
Revenues generated from pay-TV will continue to rise at a faster rate than TV advertising, up by 58% to $33.8 billion in real terms by 2012. Significantly, pay-TV revenues will surpass those derived from advertising by as early as the end of this year and continue to grow at a slightly higher rate than advertising between now and 2012.
The report says that basic subscription packages account for 58% of total pay-TV revenue; this is expected to fall only slightly to 55% by 2012 due to the prevalence primitive continental cable systems.
Pan-European average revenues per user currently average $24 per month (about £13), with satellite homes typically spending more than cable homes. However, contrary this trend, in the UK BSkyB’s ARPU is currently around £31, whilst Telewest’s is over £44.
ZenithOptimedia: 020 7224 8500 www.zenithoptimedia.com
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