IPTV Deployments Featured Article

Digital Terrestrial Television Wins Over Western Europe by 2012

By Michelle Robart, TMCnet Editor

With the discontinuation of analog TV services looming, an increasing amount of Western Europeans are switching to Digital Terrestrial Television (DTT).

 

Most DTT services are provided as free-to-air (FTA), with no subscription and minimal hardware requirements. For example, in the UK, DTT set-top boxes are available for as little as £10, or just under $20.

 

However, pay-DTT is creating competition with other pay-TV offerings from cable and telco-based service providers in some markets. A new research study from ABI Research (News - Alert) revealed that DTT’s market potential varies widely from country to country, depending on factors that include the availability of digital alternatives and the current reliance on analog terrestrial FTA TV.

 

“Some pay-DTT providers are positioning their service as a kind of ‘halfway house’ between free-to-air services and other forms of pay TV,” says senior analyst, Cesar Bachelet.

 

"They offer all the regular FTA programs, plus some premium content at an attractive price." One of the most interesting markets, Italy, is expected to show the strongest growth in DTT over the next five years, and pay-DTT is a leading component of that growth. It is attractive for several reasons including plenty of sports programming, but the main driver is the prevalence of "pay-as-you-go" (PAYG) services that don’t require a commitment to lengthy subscriptions.

 

“The pay-as-you-go model has a strong history in Italy in broadband and mobile telephone services, so the transition to pay-DTT is an easy one,” noted Bachelet. “ABI Research believes PAYG DTT will prove popular in other European markets as well.”

 

Another important factor of DTT’s success in a given market is the availability (or lack) of digital alternatives, and the level to which the population depends on analog terrestrial FTA television.

 

In Belgium, most of the population gets its TV via cable, so the switch to digital TV will primarily occur within the cable environment, meaning DTT is unlikely to gain much traction.

 

The new research brief, “European DTT Services Snapshot,” gives an overview of the European DTT market, focusing on drivers, ASO (analog switch-off) plans, business models and key players. It includes forecast figures to 2012 for shipments of TV-centric DTT receivers and households using DTT.

 

The study makes up part of the ABI’s Multi-Channel Video Research Service.

As a market research company, ABI Research focuses on the impact of emerging technologies on global consumer and business markets. Utilizing a unique blend of market intelligence, primary research, and expert assessment from its worldwide team of industry analysts, ABI Research assists hundreds of clients each year with their strategic growth initiatives.

 

Michelle Robart is a Contributing Editor at TMCnet. To read more of her articles please visit her columnist page.