05.08.2007 12:00 AM
IPTV to account for growing piece of European multichannel market, says report

As of year-end 2006, of the 265 million TV households in the 27 European countries examined for a recent SNL Kagan report, 116 million, or 43.7 percent, subscribed to multichannel television.

The report, “European Multichannel Markets,” forecasts that over the next 10 years, the number of multichannel households in the region will grow at a 3.9 percent compound annual growth rate (CAGR), surpassing 150 million by 2012 and reaching 170 million by 2016.

Among the report’s findings:

  • Cable TV service currently dominates the European multichannel landscape, with 80 million subscribers to basic server at the end of 2006 accounting for 69 percent of all multichannel households.
  • Direct to home satellite earned $15 billion in subscription revenue and accounted for 51 percent of the total multichannel economy at the end of 2006.
  • By 2016, Kagan forecasts there will be 1.2 million fixed wireless households generating $232 million in subscription revenues.
  • Although still an emerging technology, IPTV holds the potential to fundamentally alter European multichannel competitive dynamics. By 2016, Kagan forecasts European IPTV services will generate $4.9 billion in subscription revenues —a 26.5 percent CAGR—and account for 8 percent of the total multichannel economy.

For more information, visit: www.kagan.com.

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