Euro Pay-TV Sector Primed for Rapid Growth

11 August 2003

A rise in subscriptions and interactive commerce is set to spark rapid growth in Europe’s pay-TV market.

So argues a new report from International Marketing Forecasts, which estimates that pay-TV revenues across the continent will jump from the current €22 billion ($24.9bn; £14.5bn) to €77bn in the coming five years.

Such expansion will be driven by a rise in household subscriptions from 40 million to 68m and an explosion in interactive income from €2.4bn to over €30bn. The latter revenue stream will account for 40% of a customer’s pay-TV bill by 2008.

Taking advantage will be the existing players. “The big winners will be the large, established channels,” declared David Brown, author of European Pay-TV Forecasts. “They have both the economies of scale and strong branding to dominate.”

Britain will witness particularly rapid growth, with pay-TV revenues forecast to leap from €4.1bn to €20bn. The UK’s pay-TV penetration will rise from 38% to 58% – a figure topped only by Finland (63.6%), Denmark (74.1%) and Sweden (79.8%). Germany, meanwhile, will lag on 36.2%.

Data sourced from: International Marketing Forecasts; additional content by WARC staff