One in 5 European TV Homes to Subscribe to Online Packages by 2020

London, UK, August 27, 2014--The number of European homes paying a monthly subscription to receive SVOD  [subscription video on demand] packages will climb from 1.78 million in 2010 (0.6%  of TV households) to 17.99 million by end-2014 (6.4%) and onto 59.41 million in  2020 (20.7%), according to a new report from Digital TV Research.

The European  Online TV & Video report forecasts that 6.8% of Eastern European TV  households (11 countries) will subscribe to an SVOD package by 2020, compared  with 29.7% in Western Europe (15 countries). Online television and video subscription revenues (SVOD) will soar from $116  million in 2010 to US$ 1,633 million in 2014 and onto $5,502 million in 2020. The UK  will remain the SVOD revenue market leader, although Germany will be close  behind by 2020.

European online TV and video revenues (over fixed broadband networks) will reach  US$ 12,872 million in 2020; up from only US$ 923 million in 2010 and the US$ 4,804 million expected in 2014. 

The UK will remain the dominant territory for online TV and video revenues.  However, its share of regional revenues will drop from 30% in 2010 to 20% in 2020.  Italy will climb from only $66 million in 2010 to $1,237 million by 2020. Russia will  grow from US$ 20 million in 2010 to US$ 874 million by 2020.

Online TV and video advertising revenues are expected to be $2,305 million in  2014, up from US$ 663 million in 2010. Rapid advertising expenditure growth will  continue, to reach a European total of $5,117 million in 2020. The UK will remain  the market leader, with US$ 1,175 million in 2020.

Online TV and video rental/pay-per-view revenues will still expand rapidly, climbing  from US$ 55 million in 2010 to $858 million in 2020. Download to-own revenues are  forecast to be US$ 1,395 million in 2020, up from US$ 89 million in 2010.