Euro international channel sales to ramp up to $5.5BN by 2018

Joseph O'Halloran | 23-10-2013

After the continent’s ongoing recession saw business flat line, European TV channels are about to ramp up investment in pay-TV channels, according to a new report from Digital TV Research.

In its survey of 225 international channels and networks from 11 groups, the TV Channel Revenues in Europe calculates that total revenues for Europe’s top pay-TV channels reached $4.21 billion in 2012, and will grow 31% to $5.52 billion by 2018.
Even though it provides the majority of the total, Digital TV Research believes that carriage fee revenue growth is slowing as markets mature, with such income projected to climb 14.1% from $2.91 billion in 2012 to $3.32 billion in 2018. During the same period, advertising revenues are set to show a huge rebound increasing 69% from $1.3 billion in 2012 to $2.2 billion by 2018.
The research showed that the UK and Ireland combined as the largest country group, with Eastern Europe the second largest region. The latter is expected to gain ground on the UK and Ireland over the next five years. “The recession has hurt some regions more than others. The UK is buoyant overall, but no growth is expected in Spain and Portugal and Italy until next year,” said Nicholas Moncrieff, report author, commenting on the report. “The estimates and forecasts in this report have been prepared using an analysis of a database of hundreds of financial records.”
Looking at which companies will benefit most from the growing market, the survey pinpointed Viacom as set to reap the highest revenues of any international channel group in Europe in 2013 with $749 million, followed by Eurosport ($651 million) and Discovery ($620 million). These three will likely be some way ahead of the pack led by Disney ($491 million), Fox ($420 million) and Turner ($396 million).
Making predictions for the next five years, Digital TV Research believes that Viacom will retain its leadership in 2018 with nearly a billion dollars of revenue ($975 million) in 2018, though it notes that Eurosport and Discovery may likely accrue $801 million and $772 million respectively, and that they may have merged operations by then.