Total revenues for Europe’s top pay-TV channels will reach $4.24 billion in 2012, according to a new report by Digital TV Research. The TV Channel Revenues in Europe report expects this figure to grow by $1.04 billion to reach $5.28 billion by 2017.
The report covers 195 international channels/networks (non-premium) from 11 groups. The estimates and forecasts in this report have been prepared using an analysis of a database of hundreds of financial records for individual channels, channel groups and corporate parents.
Co-author Nicholas Moncrieff noted that although it provided the bulk of the total, carriage fee revenue growth was slowing as markets mature. “Having said that, carriage fee revenues will climb by 11.6 per cent from $2.93 billion in 2012 to $3.26 billion in 2017. Most of the growth will come from a combination of higher penetration in Eastern Europe and the appearance of more HD channels that command higher carriage fees or at least allow channels to protect carriage fees in negotiations with platform operators,” he added.
“Advertising has more room for growth as non-traditional channels gain audience share and greater acceptance among ad agencies,” suggested Co-author Simon Murray. “However, the international players face great competition as traditional domestic terrestrial players push their thematic channels. Advertising revenues for the channels featured in this report will increase by 53.1 per cent from $1.32 billion in 2012 to $2.02 billion by 2017,” he explained.
Viacom is the top channel group by revenues generated (with $741 million anticipated for 2012), and will remain so for the forecast period (growing to just under $1 billion in 2017). The next group involves Discovery, Disney and Eurosport, which will all have similar revenues in 2012. Discovery is in talks with TF1 (Eurosport’s owner), which could create a combined group that would lead the market. In the third bracket, Fox, NBC Universal and Turner all have similar revenues.
This report estimates and forecasts revenue for the principal pay-TV channels of the major channel groups that operate across Europe. The channels are those that combine platform subscriber/carriage fees with advertising income as well as their group’s major free-to-air advertiser supported channel brands. Premium channels, principally movies and sport that require extra payment by the public, have been excluded together with a number of newer minor channels.