Private Media Group (PRVT)

Digital Cable and Satellite Development in Europe

Adoption of digital TV (DTV) is growing more rapidly than ever in Western Europe, driven by the success of new delivery platforms such as Digital Terrestrial (DTT) broadcasting and IP-based TV from telcos and other providers. Strategy Analytics estimated⁹ that the number of households using some form of digital TV in Western Europe was 75 million in 2006, up from 56 million at the end of 2005. Strategy Analytics forecasts that by 2010, DTV will be used by almost 127 million households in the region – close to 77 percent of all TV homes. The growth of DTT and IPTV threatens cable and satellite operators who have historically dominated pay TV in Europe and other regions. These new platforms will also spur millions of consumers to access TV programming from multiple sources, especially in countries where hybrid services combining free DTT channels with broadband-delivered IPTV content are being launched.

According to MRG (Multimedia Research Group, Inc.), the number of global IPTV subscribers will grow from 8.0 million in 2006 to 50.7 million in 2010, a compound annual growth rate of 58 percent. Europe is leading the market and the number of IPTV subscribers will grow from approximately 4 million in 2006 to 22 million in 2010. At present, a large majority of all new IPTV platforms include adult entertainment in their VOD offering.

Digital Cable and Satellite Development in Europe

According to a March 2005 report from Strategy Analytics, Inc. (Digital TV in Western Europe: Market Outlook & Analysis), approximately 25 million households received digital satellite service and 7.6 million households received digital cable service. The report estimates that by 2010 there will be 49.1 million digital satellite subscribers and 28.9 million digital cable subscribers. Based on the report, the total estimated number of digital cable and satellite subscribers in Europe for 2010 is approximately 78 million households, a growth of 139%.

With respect to IPTV, Screendigest reports that in the first six months of 2005 the number of subscribers to European IPTV services has increased by 66%. France is the biggest of Europe’s IPTV markets and will still be in 2009 by which time there will be 2.4 million subscribers. IPTV growth rates over the next five years will see this new platform have a significant impact on most European Pay TV markets. In 2004 eight new IPTV services were launched in Europe, this is the highest number so far.

According to MRG (Multimedia Research Group, Inc.), the number of global IPTV subscribers will grow from 3.7 million in 2005 to 36.9 million in 2009, a compound annual growth rate of 78 percent. Europe is leading the market and the number of IPTV subscribers will grow from approx. 2 million in 2005 to 15 million in 2009.

Digital Cable and Satellite Development in Europe

According to a March 2005 report from Strategy Analytics, Inc. (Digital TV in Western Europe: Market Outlook & Analysis), approximately 25 million households received digital satellite service and 7.6 million households received digital cable service. The report estimates that by 2010 there will be 49.1 million digital satellite subscribers and 28.9 million digital cable subscribers. Based on the report, the total estimated number of digital cable and satellite subscribers in Europe for 2010 is approximately 78 million households, a growth of 139%.