Table of Contents

Digital TV markets 2004: development of the Western European and US markets to 2008 - Provides a detailed analysis of the Western European and US digital TV markets, focusing on the development of digital TV across the different national broadcast environments.

Product Code: DMTC0980

 

Publication Date: 08-Jun-2004


Overview

Introduction

Following disappointing levels of development in 2001 and 2002, the European and US digital TV markets exhibited renewed subscriber growth in 2003. The continuing growth of digital satellite services, coupled with the success of DTT in the UK, Finland and Sweden in particular, have provided a welcome boost to the sector.

Scope

·         Analyzes the key issues and trends determining the development of digital TV in Europe, discussing how these vary by broadcast platform and by country

·         Provides an individual analysis of the status and prospects for digital TV across Western European and the US

·         Countries covered include: Austria, Belgium, France, Germany, Italy, the Netherlands, the Nordics, Portugal, Spain, Switzerland the UK and the US

Highlights

Datamonitor forecasts that the European digital TV market will grow from 31 million households at the end of 2003 to 89 million households at the end of 2007, with most growth coming from digital cable and terrestrial services

The European market will exhibit strong growth over the next few years, growing over three-fold over by the end of 2008. With the US market growing by only 36% during this period, Datamonitor expects Europe to take leadership in the digital TV sector

The UK will retain its position as the most developed digital TV market in Europe, with continuing growth of Sky's satellite platform and the success of Freeview combining to boost digital penetration to 82% by the end of 2008

Reasons to Purchase

·         Provides an update on digital development progress and future plans by platform on a country-by-country basis, with forecasts from 2003-2008

·         Charts progress in the Western European and US digital TV markets

·         Examines different platforms and the nature of competitive environments in each of the country markets covered


CHAPTER 1 EXECUTIVE SUMMARY

3

Introduction

3

Market context

3

Market development comparison

4

Platform overview: cable, satellite, DTT and IPTV

5

Competitive dynamics

6

TABLE OF CONTENTS

8

LIST OF TABLES

14

LIST OF FIGURES

16

CHAPTER 2 INTRODUCTION

17

What is this report about?

17

How to use this report

17

CHAPTER 3 MARKET CONTEXT

18

Introduction

18

Key findings

18

Strong growth ahead

19

Market development comparison

20

Europe will surpass the US by the end of 2006

23

Digital cable overview

24

Consolidation in Europe and the US

24

Focusing on broadband services

25

US market to remain large, but poorly penetrated

25

Digital satellite overview

27

Recent mergers highlight importance of scale

27

US to remain the largest market

28

Digital terrestrial overview

30

DTT gaining traction in certain markets

32

Learning the lessons of DTT launches

32

The success of Freeview

33

Exporting Freeview's success to other markets

35

IPTV: The emergence of a fourth platform for digital TV?

36

A platform that faces significant challenges

36

Business model uncertainty and high costs hinder IPTV rollout

37

Can the market support four digital TV technologies?

38

CHAPTER 4 COMPETITIVE DYNAMICS

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Introduction

40

Key findings

40

Austria: digital satellite to dominate a slowly growing market

42

Cable: limited growth due to slow migration of basic subscribers

42

Satellite: the primary TV platform in Austria

43

DTT: trials test MHP interactivity and return path options

43

Fewer than half of Austrian households digital by 2008

45

Belgium: digital development driven by the pay-TV sector

46

Digital and pay-TV services available through Canal+

46

Flanders: Telenet dominates

46

Wallonia: fragmented market hinders digital deployment

47

DTT: few signs of life

48

Differentiating basic digital cable services key to growth

49

France: continued delays to DTT rollout hinder digital growth

50

Cable: slow growth of digital in 2003

50

Satellite: strong competition between Canal Satellite and TPS

52

DTT: still uncertainties given delayed launch

53

IPTV: France sees a flurry of DSL TV activity

54

Delayed DTT launch and slowing satellite growth restrict DTV

56

Germany: growth dependent on basic cable and FTA satellite

57

Premiere dominates the market with almost 3 million subscribers

57

Cable: consolidation holds the key to growth

58

Satellite: development of FTA sector crucial to growth

60

DTT: a successful start to regional rollout

60

Europe's largest digital TV market by the end of 2008

63

Italy: DTT to be the largest digital platform by 2007

64

Cable and fixed-line TV services

64

Satellite: positive impact felt following merger in Italy

65

DTT: 2004 launch provides optimism

66

DTT will become the largest digital platform by the end of 2007

68

The Netherlands: digital cable to dominate in the long term

69

Cable: Essent Kabelcom seeks to lure basic subscribers to digital

69

Satellite: Canal Digitaal Satellite passes the 500,000 mark

71

DTT: Digitenne gets off to a slow start

72

DTV growth dependent on uptake of basic digital cable services

73

The Nordics: cable and DTT set to drive digital penetration

74

Satellite: Canal Digital / Viasat duopoly

74

DTT: strong progress in Finland and Sweden

75

Cable: broad basic packages restrict digital growth

77

Denmark: cable to become the largest platform by 2007

79

Finland: DTT continues to dominate

80

Norway: digital cable set for strong growth

81

Sweden: cable to be the largest digital platform by 2006

82

Portugal: delayed DTT deployment restricts growth

83

Cable: limited uptake of digital services to date

83

Satellite: minimal growth expected

84

DTT: further delays hinder switch-off plans

84

DTT to become the leading digital platform

86

Spain: satellite to dominate despite strong DTT growth

87

Cable: digital set to grow, while consolidation continues

87

Satellite: renewed optimism following merger

89

DTT: market in a state of limbo

91

IPTV: Telefónica's TV over ADSL service nearing launch

92

Satellite dominance to continue

94

Switzerland: continued slow development of digital cable

95

Cable: Cablecom dominates

95

DTT: focus on areas not covered by cable networks

96

DTT and satellite to remain niche in a cable-dominated market

98

The UK: success of Freeview maintains the momentum

99

Cable: limited digital growth in 2003

99

Satellite: Sky experiences slowing growth but increasing ARPU

101

DTT: success of Freeview continues

105

Freeview growth drives digital penetration to 82% by 2008

107

The US: close competition between cable and satellite

108

Strong digital mandate

108

High definition television (HDTV): the new frontier

109

PVRs: no longer a satellite-only proposition

110

Video-on-Demand: more successful as a subscription service

110

Cable: consolidation set to continue

111

Satellite: more cooperation between operators possible

111

DTT: limited opportunities

112

Over half of US households digital by the end of 2008

113

Conclusion

114

CHAPTER 5 APPENDIX

115

Definitions

115

Research methodology

115

Future readings

116

2003 reports

116

2004 reports

116

SPP writing team

116

How to contact experts in your industry

116

List of Tables

 

Table 1: European digital TV uptake to 2008

19

Table 2: Market development comparison, 2003-2008

21

Table 3: Digital TV uptake comparison: Europe vs US

23

Table 4: European digital cable overview

26

Table 5: European digital satellite overview

29

Table 6: European digital terrestrial overview

31

Table 7: Austrian digital TV uptake to 2008

45

Table 8: Belgian digital TV uptake to 2008

49

Table 9: French digital TV uptake to 2008

56

Table 10: German digital TV uptake to 2008

63

Table 11: Italian digital TV uptake to 2008

68

Table 12: Dutch digital TV uptake to 2008

73

Table 13: Danish digital TV uptake to 2008

79

Table 14: Finnish digital TV uptake to 2008

80

Table 15: Norwegian digital TV uptake to 2008

81

Table 16: Swedish digital TV uptake to 2008

82

Table 17: Portuguese digital TV uptake to 2008

86

Table 18: Spanish digital TV uptake to 2008

94

Table 19: Swiss digital TV uptake to 2008

98

Table 20: UK digital TV uptake to 2008

107

Table 21: US digital TV uptake to 2008

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List of Figures

 

Figure 1: European digital TV uptake to 2008

3

Figure 2: Market development comparison, 2003-2008

4

Figure 3: European digital TV uptake to 2008

19

Figure 4: Market development comparison, 2003-2008

20

Figure 5: Digital TV uptake comparison: Europe vs US

23

Figure 6: Austrian digital TV uptake to 2008

45

Figure 7: Belgian digital TV uptake to 2008

49

Figure 8: French digital TV uptake to 2008

56

Figure 9: German digital TV uptake to 2008

63

Figure 10: Italian digital TV uptake to 2008

68

Figure 11: Dutch digital TV uptake to 2008

73

Figure 12: Danish digital TV uptake to 2008

79

Figure 13: Finnish digital TV uptake to 2008

80

Figure 14: Norwegian digital TV uptake to 2008

81

Figure 15: Swedish digital TV uptake to 2008

82

Figure 16: Portuguese digital TV uptake to 2008

86

Figure 17: Spanish digital TV uptake to 2008

94

Figure 18: Swiss digital TV uptake to 2008

98

Figure 19: UK digital TV uptake to 2008

107

Figure 20: US digital TV uptake to 2008

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