East Euro pay-TV slowly and steadily on the rise

DetailsJoseph O'Halloran | 31 March 2015

Flying in the face of challenging macroeconomic and political circumstances, pay-TV revenues in Eastern Europe are set for significant growth, says Digital TV Research.

In the fifth edition of the Digital TV Eastern Europe Forecasts report the analyst predicts pay-TV revenues to total $7.269 billion in 2020, 45% higher than in 2010. Yet the analysis also shows that the there will be an increase of $1 billion in market value between 2014 and 2020, with growth slowing considerably to only 17% in that time period.The analyst projects that digital pay-TV subscribers will increase from 25.8 million (20.7% of TV households) in 2010 to 51 million (40.0%) in 2014 and on to 76.7 million (59.4%) by 2020.

Digital TV Research believes that one of the key challenges for pay-TV in the region has been that the market has long been distorted by the legacy of analogue cable whereby many homes traditionally received a limited number of channels for a very small fee. The good news is that the research found that such subscribers are rapidly converting mostly to digital cable but also to IPTV, satellite TV and DTT.

In all, the report calculates that by 2020 digital pay-TV revenues will likely increase by 47% ($2.2 billion) between 2014 and 2020. Despite the industry's current travails elsewhere, digital cable revenues are set to more than double between 2014 and 2020, with IPTV up by 56% and pay DTT up by 53%. However, satellite TV revenues (the main earner) will only grow by 17% over the same period.