The increasing deployment of IPTV services will see the pay-TV market in Western Europe enjoy a modest rate of growth in the number of households subscribing to pay-TV services, according to the latest research published by Analysys Mason.
According to the Analysys Mason report,
Pay TV in Western Europe: market sizings and forecasts 2005-2013, the number of households subscribing to pay-TV services will increase at a compound annual growth rate of 3.2% from 90.6 million in 2007 to 109.2 million by the end of 2013.
Report author Richard Hadley said: “The adoption of IPTV services will be driven by a combination of factors, including the proliferation of multi-play strategies; latent broadband growth; improving brand recognition, broadening content offerings, and the general move towards digital TV services as the analogue TV signal is switched off in Western Europe.
“However, the growing popularity of IPTV among households will contribute to a slow down in pay-TV spend as these predominantly lower-value TV packages are increasingly bundled with telecoms services.”
Cable TV will continue to be the most popular pay-TV platform, accounting for 48% of Western European pay-TV households by 2013. However, this figure represents a notable decline in market share, down from 58% at the end of 2007.
IPTV is forecast to increase its share of the Western European pay-TV households from 6% to 15% between 2007 and 2013. However, it will account for only 8% of pay-TV spend in Western Europe in 2013.
IMS Research recently forecast that IPTV set-top boxes will grow at a compound annual growth rate of 37.1% through the end of 2012.
These shipments will represent revenues of $3 billion, IP and digital terrestrial hybrid set-top boxes are expected to comprise 30% of shipments in 2012 with HD DVR boxes nearing 35% (see IPTV Set-Top Boxes To Be $3 Billion Business In 2012).
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