Pay-TV Is Key To Digital TV Development

The introduction of digital TV services will have a dramatic impact on the TV market in Europe, according to new findings at CIT Research. This is one of the key findings which will be presented at the IBC ‘Subscription Television’ conference on Thursday 20^th June at the Meridien Hotel, London.

CIT estimates that at the end of 1996 there will be over 14.5 million pay-TV homes in western Europe, rising to nearly 33 million by 2004. By the end of 1996, pay-TV subscription revenue will exceed £3.2 billion. Pay-TV operators will receive about 90% of this, with the rest going to cable operators in distribution payments. By 2004 total pay-TV subscription revenues are projected to be £8.1 billion.

CIT also believes that by 2004 delivery of pay-TV via DTH will dominate the market, accounting for 52% of the installed base: 29% of subscribers will come from the cable market, and 19% from a terrestrial antenna. Pay services are also expected to be supplemented by ‘web broadcasts’ and on-line services. In reality though these may be little more than newer versions of the teletext and web services currently taken by the on-line community.

At present the UK and France have the highest penetration of pay-TV in Europe with over 21% penetration of total TV homes each. This compares with 8.2% in Spain and only 3% in Germany. In the UK DTH and cable subscriber billings for BSkyB packages will reach an estimated £922 million in 1996, with £755 million being paid to BSkyB and the remainder to cable operators. CIT forecasts that BSkyB will report 1996 revenues exceeding £900 million, up from 1995’s £778 million. This would be the first time that BSkyB’s revenues exceeded its level of debt – currently running at £780 million.

CIT: 0171 486 3500