Advanced Television

Investment drives 5.5% top-line Euro cable growth

March 5, 2013

Colin Mann @ Cable Congress

Trade body Cable Europe has revealed fresh data from analyst firm IHS Screen Digest that shows 5.5 per cent per cent top-line revenue growth across Europe, representing nearly €1 billion in new revenues for 2012. According to Cable Europe executives speaking at Cable Congress 2013, the upward trend is explained by a shift towards digital for customers increasingly relying on the high speed fibre-rich broadband connections for which cable is known as well as the trend of increasingly accessing video content over cable’s high performance telecom networks.

“What we’re seeing this year is continued growth on the revenue side which gives us almost a billion reasons to be encouraged, but the really interesting story is why,” commented Cable Europe President, Manuel Kohnstamm. “In a market where you hear a lot about the over-the-top threat, the data shows that cable is embracing the power of the platform to deliver content how and when people want it. Stay close to the consumer, look at investment as a means to innovate and grow – this thinking is helping us find our stride as a viable competitor to connect Europe. The 8.4 per cent growth in broadband subscribers also tells us a lot about Europe’s bright, connected future.”

Key YE2012 figures from new IHS Screen Digest analysis include:

  • Revenues for cable’s grew 5.5 per cent to €20.6bn, nearly a €1 billion increase in total cable revenues
  • Triple-play growth across different categories of services:

– Digital TV +12 per cent revenue growth

– Internet +6.5 per cent revenue growth

– Cable telephony +5.3 per cent revenue growth

  • Video on Demand revenue jumped by 24 per cent
  • European broadband subscribers jumped from 25 million in 2011 to over 27 million in 2012 – that is 8.4 per cent growth towards what EU leaders call the Digital Agenda
  • Digital TV subscribers rose 9.2 per cent to 30.5mn (28 million in 2011)

“Cable’s fast broadband combined with more sophisticated in-home networks and whole-home entertainment device strategies are reaching mass market as the TV landscape is evolving,” said Cable Europe’s Executive Chairman, Matthias Kurth. “The growth we’re seeing is based on knowing consumer habits and investing a step ahead of their needs. Providing a high quality service, recognising shifts in their viewing habits and continually upgrading our networks – this is how cable is helping to future-proof Europe. Cable’s digital success is explained by the link between investment and innovation, our very own Digital Agenda.”

“Telecom services,” or the combination of fast Internet and in-home WiFi networks, are becoming a core business as customers shift away from traditional TV viewing. More and more consumers are getting their content over cable’s high performance networks via digital means. In terms of Next Generation TV, cable is already well positioned and this trend is being chased by many in the highly competitive European market.

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