HDTV in Europe: Ready for take-off?

This publication has been discontinued on November 23, 2011.

Introduction

Abstract

Overview

Europe's HDTV market is in its early days: although estimates point to 10 million households equipped with an HD-ready TV by the end of 2006, only a fraction of them will actually be consuming HDTV services.

Nevertheless, the high-definition TV transition is both well underway and irreversible, with clear strides having been made over the past two years:

• The base of HD-ready TV sets is growing.
• Although later than planned, HD services have been launched in several European countries.
• The different distribution networks have become HD-compatible.
• Technical production and broadcasting chains are largely HD-ready.

But major obstacles do still exist which are hampering the take-up rate:

• Some consumers have trouble understanding the benefits of high definition.
• The HD business model is still fuzzy for general interest channels.
• HD programme production is being blocked by the chicken or the egg dilemma that is weighing on the industry as a whole.

At a time when growth is being fuelled by pay-TV services, the introduction of HD-DVD players later this year could give the market a boost, as could HD versions of the Olympic Games in Beijing in 2008 and of the European football championships. Added to this, the launch of a free to air HDTV service could provided the much-needed breakthrough to increase viewers' exposure to high definition services.

Key questions

• What lessons can be learned from HDTV deployments in the US and Japan?
• HDTV in Europe: on which network?
• How to encourage an expansion of HD content?
• What conditions are needed for a migration to a free HDTV offer?
• What leverage can be used to kick start the market?

Who should read this report?

TV channels and media groups

• Pay-TV operators: generate ARPU, attract subscribers and/or cement their loyalty?
• Is it in generalist channels' interest to migrate to HD?

Regulators

• DTT, should they wait for the analogue switch-off in 2010?

Operators: telcos, ISPs, satellite, cable, terrestrial

• Satellite shifting to free HDTV services?
• What positioning for IPTV with respect to HD?

Equipment-makers

• What will be the next HDTV viewing devices?
• How to rationalise the offer to consumers?

Investors and analysts

• HD's development prospects in Europe.
• Its impact on players along the media chain.

Table of Contents

1. HDTV: current state of affairs

• 1.1. Format, technical and additional costs
• 1.2. HDTV deployment levels in Europe

2. Lessons to be drawn from the deployment of HDTV in the USA and Japan

• 2.1. Around 10% of households use HDTV services
• 2.2. HDTV distributed over four networks
• 2.3. HDTV offer spurred by FTA in Japan and pay-TV in the USA

3. HDTV in Europe - on which network?

• 3.1. Satellite, HDTV's driving force
• 3.2. IPTV getting ready to join the fray
• 3.3. DTT - waiting for the analogue switch off in 2010?
• 3.4. Cable: limited capacity available
• 3.5. And what about the Web?

4. HD offer strategies

• 4.1. Pay-TV operators: generate ARPU, attract subscribers and/or cement their loyalty?
• 4.2. Is it in generalist channels' interest to migrate to HD?
• 4.3. Launch of free HDTV service platforms: options

5. HD programme availability

• 5.1. HD programme production and acquisition
• 5.2. How to expand HD programming?

6. HD devices, remaining uncertainties

• 6.1. HD-ready TVs and set-top boxes
• 6.2. Devices for "stand alone" HD prg consumption: game consoles HD DVD, HD PVR, PC

7. HDTV in Europe: what development prospects?

• 7.1. Two successive waves of HD offer rollouts in Europe?
  • 7.1.1. Market driven by pay-TV, as in the USA
  • 7.1.2. Will free HDTV take over?
• 7.2. Disparities in deployment levels around Europe
• 7.3. Measures to kick start the HDTV market

List of tables and figures

• Table 1: Impact of HD on the audiovisual value chain
• Table 2: HDTV offers in the major European markets
• Table 3: HD strategy of SkyPerfecTV!
• Table 4: Carriage of HDTV services on TV broadcasting networks in Europe
• Table 5: Comparison of networks enabling broadcasting of HD services
• Table 6: Examples of HD marketing methods in Europe
• Table 7: Number of planned HD-DVD titles in the USA in mid-2006
• Table 8: HDTV deployment factors in Europe
  • Figure 1: HDTV deployment around the world, end 2005
  • Figure 2: TVSD, TVHD, 2K (cinema) picture formats
  • Figure 3: Distribution of digital channels via BS satellite in Japan
  • Figure 4: TV access modes in Japan and the USA (% of TV households)
  • Figure 5: ADSL speed-distance diagram
  • Figure 6: Proportion of broadband Internet access lines of over 8 Mbps in the major European markets in 2005
  • Figure 7: Example of HD DTT multiplex (optimum MPEG-4 compression)
  • Figure 8: Upgrading of Mediaset's installations to HD level (Q1 2006)
  • Figure 9: Trends in average prices of HD-ready LCD screens in 2005
  • Figure 10: HD Ready TV set penetration in major European countries
  • Figure 11: Forecast numbers of households equipped with HD Ready TVs in Western Europe

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