January 2004
European Digital Pay TV Revenues
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Recent high profile executive departures in European pay-TV largely reflect the changing landscape of the market. The cable operators that had over extended themselves during the mid-1990s, and found themselves caught in the coat tails of the dot.com boom, are now largely in the hands of the banks. They have struggled to match the digital offerings of their satellite competitors. Meanwhile, it remains to be seen whether digital terrestrial television becomes a threat to the basic cable offerings available in continental Europe. The early lessons that have been learnt in the UK markets have not been noted elsewhere.
Satellite subscribers in the UK, France, Spain and Italy now have substantial channel offering available to them, with no sign of the growth slowing down. But in the smaller countries, such as those in the Nordic region and the Central and East Europe territories, the dynamics will have to change significantly for any growth in the number of available channels to occur. There has to be a certain amount of nervousness about the launch of the mixed pay and free model in France, although the benefits of the changing financial structures of satellite platforms in France, Spain and Italy have encouraged our projections in the European market. Overall, revenues can be expected to grow reasonably over the next five years.
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