20-Jan-04
The Western European pay TV industry business was worth almost €20b in 2003. It is forecast to grow by 23% to €24b in 2006

In a new report from Screen Digest, Western European TV revenue is forecast to grow by 23% over the next 3 years. During the same period, the number of pay-TV subscribers will increase by just 10% - from 76.4m in 2003 to 84m in 2006.

Focus for pay TV operators shifts to growing revenues:
With growth in the number of pay TV subscribers reaching a plateau, the emphasis for pay TV operators is now on growing existing subscriber revenues. This won't be easy. Across Western Europe, the average monthly ARPU (average revenue per subscriber) stood at €21.7 at year end 2003. This is forecast to grow to €24.9 by year end 2006.
These figures highlight the difficulties that pay TV operators in continental Europe have in persuading their customers to upgrade to more expensive premium TV packages. A low-cost multi-channel TV mentality pervades in many markets - particularly in Germany and the Benelux countries.

Balance of power shifts further towards satellite operators
Recent market consolidation in Western Europe's pay TV industry has further shifted the balance of power towards satellite operators over cable. By 2006 revenue from DTH (direct-to-home satellite - €11.4 billion) will almost equal that generated by cable (€12.1 billion), despite the fact that there are more than twice as many cable subscribers.

So the money and the power lies in the hands of European satellite operators. Cable groups' attempts to mimic satellite's premium TV business model have to date failed. Even in 2006, the majority of European cable TV subscribers will be receiving analogue signals - analogue satellite ceased to exist during 2002.

PPV (Pay-Per-View) Comes of Age
Over the next 3 years PPV revenues will grow at a much faster rate than traditional premium TV revenues. At year end 2003, total PPV revenues (both movies and sports) were €713m - accounting for 3.6% of total pay-TV revenues. By 2006, total PPV revenues will reach €1.48b - accounting for 5.7% of total pay TV revenues. This trend will be more pronounced in certain markets - in Spain for example, PPV revenues will constitute 13% of total pay TV revenues by 2006.

Dr Guy Bisson, co-author of the report stated: "Although Pay TV operators in many western European markets have reached a plateau in terms of subscriber growth, fledgling PPV services are finally delivering on their promise - delivering incremental revenue and providing a much needed boost to ARPUs."

this press release is about the report
European Digital Pay Television Platforms

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