Worldwide digital terrestrial TV (DTT) is expected to more than triple over the next five years, with growth driven primarily in Western Europe, according to IMS Research.
IMS Research also says that research carried out on the DTT market suggest that pay-DTT services have a greater chance of survival where free DTT services are already well-established.
The worldwide DTT market is predicted to grow significantly over the next five years, from an estimated 37 million households in 2006, to a forecast 131 million households by the end of 2011.
The Europe, Middle East and Africa (EMEA) region has experienced the most success in DTT adoption, and is expected to comprise nearly 62% of global DTT households by 2011.
A recent report from Ofcom said that digital television has reached over 70% of households in the UK, although most sales of Freeview boxes are for homes which have already gone digital (see Digital TV In 70% Of Homes).
Mark Meza, analyst, IMS Research, said: “The success of DTT in Europe is due in large part to government and industry initiatives, a growing selection of content, and increasingly affordable set-top boxes.
“This success has created an opportunity for value-added paid DTT services, such as Top Up TV in the UK. Paid DTT services have a distinct advantage in markets where a free DTT service has been successful.
Meza added: “Standalone pay DTT services face greater challenges in establishing subscribers, often due to limited content offerings and pricing that is not competitive with other pay TV options.
“An example of this is the difficulty faced by USDTV, which recently filed for Chapter 7 bankruptcy after securing only about 10,000 subscribers in 3 years of operation, as well as early launches of pay-DTT in the UK.”
With the continued growth expected for DTT worldwide over the next five years, IMS Research predicts an accompanying rise in value-added pay-DTT offerings.
A report from Informa Telecoms & Media released in September said that nearly 40 million digital households will be added in 2006, bringing the global total to 183 million (see Digital Penetration Of TV Households To Reach 16%).
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