Three out of ten households in Western Europe will subscribe to a video on demand service by the end of the decade. Across Europe there will be almost 60 million households with an online video subscription in 2020. The United Kingdom will remain the market leader in terms of revenue, just ahead of Germany, according to a forecast from Digital TV Research.

The number of European homes paying a monthly subscription to receive video on demand will climb from 1.78 million in 2010 to 17.99 million by the end of 2014 and onto 59.41 million in 2020. That is an increase from 0.6% to 20.7% of television homes over the decade.

Western Europe will lead, with subscription video on demand services reaching 29.7% of television homes, while in Eastern Europe they will reach 6.8%.

Online television and video subscription revenues will rise from $116 million in 2010 to $1.633 million in 2014, reaching $5.502 million in 2020.

The United Kingdom will remain the largest European market for online television and video subscriptions by value, however its share of regional revenues will drop from 30% in 2010 to 20% in 2020.

Online television and video advertising income across Europe is forecast to rise from $663 million in 2010 through $2,305 million in 2014 to $5,117 million in 2020, with the United Kingdom accounting for $1,175 million of that.

Online television and video rental or pay-per-view revenues will rise rapidly, to reach $858 million in 2020, while download to own sales will reach $1,395 million.

European Online TV and Video Forecasts is available from Digital TV Research. It includes profiles and forecasts for 26 European countries and summaries of the main services and platforms.