Monday, October 31, 2005

Digital TV only in a third of global TV homes by 2010

By 2010, almost a third of the world's TV homes will receive digital signals - or nearly 400 million households. This indicates that digital growth will accelerate significantly as the decade progresses, especially outside North America and western Europe. . The North American penetration rate will exceed 50%, with western Europe at 31%. The aspirations of many governments to cut off analogue signals over the next decade are in jeopardy. If digital conversion is left to the consumer, then there will be a core of digital obstinates. If governments try to push analogue switch-off through subsidies or even regulation, then they run the risk of legal action from pay TV platforms or consumer groups.

In most markets a specific digital platform is the logical successor to analogue TV, but politicians need to give equal weight to all of the digital options. They face a difficult job to balance the urge to drive through digital conversion as quickly as possible, while also retaining platform neutrality.

Digital TV household composition in 2010 (million). Cable will be the main source of digital TV households, bringing in 230 million homes by 2010. Satellite (DTH) will be the next most popular delivery system at 92 million. There will be 45 million Digital Terrestrial (DTT)-only homes (i.e. those not subscribing to cable, satellite or IPTV) and 26 million households receiving IPTV signals. However, 711 million homes will still take analogue signals, so digital growth will necessarily extend way beyond the forecast period. By 2010, 67% of TV households will still receive analogue signals, revealing plenty of scope for further digital growth.

More (tables): The fifth edition of Informa's Dynamics of Games report Publ. 20050930