Following a period of rapid growth in digital television (DTV) uptake in the UK, penetration is set to reach 72% of all households by the end of 2007, according to forecasts from Datamonitor.
The group points to Freeview’s successes in creating an alternative to pay-TV which is clearly understood by consumers and which may ultimately act as a stepping stone from free to pay-TV services. “Despite 2002 being a difficult year for the digital TV industry, it also marked the transition beyond its satellite pay-TV roots to a more varied free-to-air TV offering,” says the report.
The UK is currently the most developed digital television market in Europe, with 41.4% of homes receiving some form of DTV by the end of 2002 (see UK Digital TV Penetration Could Overtake Internet, Says ITC).
Free-to-air drives growth Datamonitor says that accelerating uptake of Freeview and continued, but ultimately slowing growth of digital cable and satellite, will result in 72% of UK households receiving digital TV by the end of 2007. This will mean that the UK will remain Europe’s largest digital TV market.
The group says that the continued growth of DTV is becoming increasingly dependent on the free-to-air TV audience, whether in already developed digital markets such as the UK or in those still waiting for digital TV to take off – including the Netherlands and Germany.
Optimistic figures? However, Datamonitor’s UK forecast is much higher than a number of other commentators’ predictions. Informa Media Group put the UK’s DTV penetration at just 66% by 2010, with the overall European figure at 41% (see European Digital Penetration To Reach 40% In 2010). Merrill Lynch reckons that UK penetration will reach just 58% by 2010 (see Freeview Moves In On Multi-Channel Sector – Merrill Lynch Long-Term Forecasts).
A separate report from Screen Digest claimed that despite growth over the last few years, the notion of a DTV Europe – that is, one where the analogue signal is no longer broadcast – remains ‘a distant dream’ (see DTV Europe Remains A ‘Distant Dream’, Says Screen Digest).
