June 02, 2010

There has been a flurry of activity around HDTV in the Nordic region in recent months. HDTV was once seen as the satellite pay TV operator?s trump card and a key service differentiator, but recent changes mean cable operators are increasingly making inroads with network improvements and significant expansion of channel offerings. Other platforms are also getting in on the act. DTT networks convert or plan to convert to more efficient transmission methods to launch HD while IPTV operators are moving towards fibre based services and increasing their available capacity for HD services.

Since the first launch of the pan Nordic Canal Plus HD channels in 2005, the Nordic region has made rapid strides in not just the provision of content, but also in business models and hardware offered to subscribers. Development over the last few years has been notable, and has been aided by the strong uptake of HD capable television screens. The knock on effect of increasing penetration of HD screens within households has resulted in an increasing consumer appetite for HD content.

The gap between TV households that have HD capable hardware and those actually viewing HD content - known as HD enabled homes - are starting to narrow as number of free-to-air (FTA) HD channels from national public and commercial broadcasters increase. All four Scandinavian countries now offer FTA HD channels via multiple platforms, with Finland leading the race with three FTA HD channels available via cable.

In the channel space, dearth of HD simulcast channels from the national commercial broadcasters is often blamed for low penetration of HD among TV households. Viewership share of the top five commercial channels range from 60 to 80 per cent - highlighting the role these channels play in convincing consumers to adopt HD. Over time, entertainment channels have taken the lead in HD availability from key genres like sports, films and documentary. 50 per cent of HD channels in the region now come from the entertainment genre.

Despite falling prices of hardware, consumer level set top box prices continue to remain high, and is seen as a major factor in impeding faster uptake of HD. UK's Sky is a good example of how lower hardware costs can boost penetration - 120 per cent year on year growth in HD uptake following slashing of set top box prices.
Norway leads the region in HD penetration, with over 18 per cent of TV households being ?HD enabled'. Finland trails the pack with 4.4 per cent HD penetration, despite having more FTA HD channels. This has been on account of its forced analogue switch off process and lack of availability of HD capable set top boxes. This is expected to change in the forecast period to 2014, as older devices are replaced and HD availability via DTT improves significantly.

 

Highlights:

• Cable operators take the lead in HD provision with larger channel line up in two countries, close behind satellite in others
• Major expansion of DTT networks in Finland and Sweden will see HD enabled households increase significantly
• Entertainment channels overtake sports and movies as largest genre for HD channels; dearth of free to air HD channels from main commercial broadcasters still seen as key cause for slow adoption of HD by households
• Video-on -Demand starts to emerge as a new battle ground for HD provision as consumer viewing patterns change; Canal Digital re-enters the VoD market in Q2 2010, with HD VoD planned for Q4 2010

In this report:

• Cable takes the lead in HD as network upgrades near completion
• HD seen as key service differentiator for cable, satellite
• Pricing models for HD bouquets see changes
• Notable increase in FTA HD channels
• Norway leads in HD penetration; Finland lags
• Major expansion of DTT HD in Finland
• HD Uptake impeded by high hardware costs
• Entertainment genre HD channels see major growth
• Video on demand seen as next battle ground

 

Tables and charts included:

• HD set penetration of TV Households (2005 - 2009)
• HD set penetration of Total TVs (2005 - 2009)
• HD Channels by Revenue Model
• Top Five Channels Viewing Share
• HD Channels by Platform
• Nordic HD Channels - Country, Ownership
• HD Channels by Genre
• HD Channel Launches (2005 - 2009)
• VoD Service Availability
• HDTV Launch by Platform - Sweden
• HDTV Launch by Platform - Norway
• HDTV Launch by Platform - Denmark
• HDTV Launch by Platform - Finland
• HD Channel Launch - Sweden Timeline
• HD Channel Launch - Denmark Timeline
• HD Channel Launch - Finland Timeline
• HD Channel Launch - Norway Timeline

Pages: 21

Tables & charts: 21

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