UK Digital TV Homes Could Top Six Million By 2001
The number of UK TV homes with digital television is expected to reach 6.3m by the end of this year. The latest figures from Merrill Lynch predict that of 24.3m TV homes, 1m will take ONdigital services and 4.8m will be with BSkyB. Nearing the end of the decade, the percentage of TV homes with digital, which should be around 26% by the end of this year, will rise to 94% in 2008.
The research showed that the number of SkyDigital subscribers grew by 735,000 in the first quarter of 2000, while ONdigital added 100,000. Merrill Lynch also say that while the cable market has stalled due to delays in launching digital and retiering, the recent launch of digital on NTL systems (see NTL Launches Digital Cable Services) completes digital service launches from all three major cable operators. These should be rolled out across their franchise areas in time for fourth quarter sales.
In future, it is expected that competition will intensify, and it is suggested that BSkyB and ONdigital will find it necessary to sign convergence deals with online service providers to cope with the threat of DSL services which will provide video on demand via the telephone network.
Merrill Lynch: 020 7628 1000