Satellite TV Is In For A Tough Time

According to a report by Datamonitor, satellite’s days as the largest digital TV platform in Europe are numbered. In a new research report titled “Beyond the STB: new device and service opportunities,” the report said that while satellite supplied 78 per cent of digital TV to European households in 2002, it will only provide 43 per cent of digital TV service by 2007.

Despite this erosion, Datamonitor predicted that satellite “will retain its role as the most advanced TV platform” in 2007 compared to cable and digital terrestrial television (DTT). The report attributed this to greater deployment of personal video recorders (PVRs) and more advanced interactive services. Datamonitor expects satellite to be the driver of PVRs over the next five years. It predicts by the end of 2007, there will be over five million PVR devices being deployed in Europe, in which the majority (57 per cent) will be on a satellite platform. The market for PVRs has so far been slow to take-off in Europe, but with markets beginning to mature in terms of subscriber numbers, operators will be under more pressure to boost average revenues per unit (ARPUs).

–Mark Holmes

(Contact: Krishna Rao, Datamonitor, e-mail: [email protected])