There will be over 170 million subscribers to pay-television services in Europe by the end of 2014. Most of the growth is coming from Eastern Europe, which will account for approaching 75 million subscribers. European pay-television revenues will exceed $40 billion in 2014, although income growth for operators is increasingly coming from bundling broadband and telephone services.
Figures from Digital TV Research forecast that total annual revenue will fall for satellite, cable and terrestrial pay-television services in Europe, while telco television services will increase, leading to a modest overall rise in revenue.
Satellite television will contribute over 45% of European pay-television revenue in 2014, accounting for over $18 billion. Although the number of satellite subscribers is increasing, average revenue is falling overall as a result of greater competition and the growth of cheaper packages.
Cable television will account for over $15 billion in revenue, over $12 billion of which will come from digital cable. Revenue from cable television in Europe is forecast to fall slightly overall, although operators will see increased income from bundled communications services.
Telco television services are also growing, accounting for over $5 billion in revenue, up over $0.5 billion on 2013.
Russia will have the largest number of pay-television subscribers in Europe, with 38.4 million, followed by Germany with 22.8 million, the United Kingdom with 16.1 million, France with 13.0 million and Poland with 10.9 million.
Pay television exceeds 90% penetration in seven European countries, led by the Netherlands, but this does not necessarily translate into large revenues.
The United Kingdom leads Europe in terms of pay-television revenue, worth $7.8 billion a year, followed by Germany at $4.6 billion, France at $4.5 billion, Italy at $4.0 billion, the Netherlands at 2.3 billion and Poland at $1.8 billion, with Russia ranked seventh at $1.7 billion.
Digital television penetration will reach almost 82% of European households by the end of 2014, with 240 million homes.
Russia will overtake the United Kingdom and France to become the second largest digital television country in Europe, after Germany, although there will still be nearly 22 million analogue homes in Russia by the end of 2014.
China is expected to have added over 60 million pay-television subscribers between 2010 and 2014, with India adding over 30 million and Brazil adding 10 million.
Global pay-television penetration is forecast to exceed 57% by the end of 2014 and be above 70% of households in over 30 countries. Five countries will account for nearly two thirds of a forecast total of 886 million homes subscribing to television services.
Where pay-television penetration is approaching saturation, subscriber numbers remain relatively flat or are even falling, but as the informitv Multiscreen Index of 100 leading pay-television services confirms, the big picture still shows continuing growth, particularly in emerging markets.
The European Digital TV Databook and Digital TV World Household Databook are available from Digital TV Research. The Multiscreen Index, tracking trends in television services worldwide, is available from informitv.