IPTV and DTTV Support Record European Digital TV Growth

Strategy Analytics: European Penetration To Reach 47% This Year; UK Leads Way With 80%. Demand for digital television in Europe will reach a new record in 2006. Nearly 19 million homes will buy digital television for the first time this year, an increase of 20 percent. The most popular option for new subscribers is still digital terrestrial TV (DTTV), with more than 10 million new homes added this year. But the newest entrant, IPTV, is also beginning to make inroads and take share from established satellite and cable providers. 16 million homes will subscribe to IPTV by 2010.

Europe's digital television market is the most competitive in the world. Competition between multiple pay or free-to-air services is ensuring that the transition from analog to digital broadcasting continues to accelerate.

75 million European homes, or 47 percent of the total, will have at least one digital television service by the end of 2006, a third higher than last year. By 2010, digital TV penetration will have reached 77 percent, or 127 million homes. The UK, with 94 percent penetration, will remain Europe's leading digital TV market in 2010, with Ireland, Austria and Sweden next in line. Digital terrestrial TV will overtake satellite to become Europe's largest digital TV platform by 2008.

Digital terrestrial television is Europe's big success story. Effective standards and public policy support have helped to create a virtuous circle of declining costs and increasing broadcaster support that will help sustain Europe's free-to-air terrestrial broadcasting model for years to come.

Digital TV Ownership Forecast End 2006

	% of total homes with at least one digital TV service
UK	79.8%
Sweden	53.3%
Finland	52.7%
Ireland	48.9%
France	48.3%
Spain	47.8%
Europe Average	47.0%
Switzerland	39.8%
Italy	39.7%
Germany	38.1%
Norway	37.3%
Denmark	34.6%
Austria	31.4%
Netherlands	27.4%
Portugal	14.7%

Strategy Analytics--Broadband Media and Communications Service Publ 20060906