Television market in Europe: Platforms, services, and devices

1. Platforms, services, and devices

2. Breakdown of viewers between TV reception mode (% of HHs)
100% 2,0 2,7 2,0
4,1 3,0 10,2 7,8 11,0
90% 6,0
19,3 10,8
14,6
37,0
80% 36,5 43,9
10,7
70% 14,0 1,1
42,9 IPTV
60% 18,4 58,6
14,5 Satellite
10,0
50% 75,0 Cable
2,0 53,2
36,0 13,3
16,2 Pay DTT
40%
0,2
62,0 DTT
30%
41,0 1,8 ATT
32,0 56,7
20%
47,6
27,0 25,5
10% 0,0
14,0
7,0 11,0 7,0
0% 0,0 0,0 0,0 0,0 0,0 0,0
UK Italy Spain France Germany Sweden Finland Denmark Netherlands
Source: MAVISE database; Ofcom ICMR 2010; IDATE TV 2010 Abbreviations:
HH - Household
IPTV – Internet Protocol TV
DTT – Digital Terrestrial Television
ATT – Analogue Terrestrial Television

3. Pay TV take-up (% of HHs)
100,0
90,0
80,0
70,0
60,0
50,0 100,0
Pay TV
40,0 83,9
68,9 68,2
30,0 62,2
55,0 55,9
20,0 36,0
26,7
10,0
0,0
UK Italy Spain France Germany Sweden Finland Denmark Netherlands
Source: MAVISE database; Ofcom ICMR 2010; IDATE TV 2010
Abbreviations:
Pay TV – subscription based television

4. In order to stay relevant and compete with other TV platforms, all players have been making
transition to digital and are delivering new services.
According to RRC’06 in Geneva, all countries in Europe have to switch over to DVB-T by 2015
year. Some countries already have made this happen and now are all digital.
DTV take-up (% of HHs)
100,0
80,0
60,0
93,5 100,0 100,0
91,0 84,1 85,8 DTV
40,0
58,2 65,2 60,8
20,0
0,0
UK Italy Spain France Germany Sweden Finland Denmark Netherlands
Abbreviations:
RRC – Regional Radio Conference
DVB-T – Digital Video Broadcasting – Terrestrial
DTV – Digital Television

5. With advent of digital technologies, companies have been able to launch new services and
increase their revenues. Along with traditional business model – subscription to linear SD
channels – new revenue streams have been emerged:
• HDTV
• DVR
• PPV
• VoD and others
• OTT
Facts and figures:
• People are today spending up to 35% of their leisure time on watching content
• 93% still watch traditional broadcast TV every week
• More than 70 % are “time-shifting” on a weekly basis
• More than 50% are using internet based on demand TV/video every week
In order to render those services and ensure their high penetration, companies need
horizontal market of capable devices like new TV sets and TV receivers.
Source: Ericsson’s “TV Consumer Insights 2010 ” report
Abbreviations:
HDTV - High Definition Television
DVR –Digital Video Recorder
PPV –Pay Per View
VoD – Video on Demand
OTT – Over the top Television

6. There are two main incarnations of receivers:
• STB – external tuner
• iDTV - embedded tuner
STBs are mainly sold by Pay TV operators in order to differentiate their offerings with a branded
STB in distribution chains. Moreover, consumers have been forced to buy STBs since so far it
hasn’t been possible to see Pay TV operators’ encrypted content without their proprietary STB.
However, at present CI and CI+ are built-in in iDTV and customers are able to watch even
encrypted channels without STB, just by means of insertion of CIM in CI interface. Since Pay TV
market accounts for at average 62 % of HHs there is huge market for both STBs and CIMs.
iDTV STB CIM
Abbreviations:
STB – Set Top Box
iDTV - integrated Digital Television Set
CI- Common Interface
CIM – Common Interface Module