Nevertheless, the high-definition TV transition is both well underway and irreversible, with clear strides having been made over the past two years:
- The base of HD-ready TV sets is growing.
- Although later than planned, HD services have been launched in several European countries.
- The different distribution networks have become HD-compatible.
- Technical production and broadcasting chains are largely HD-ready.
But major obstacles do still exist which are hampering the take-up rate:
- Some consumers have trouble understanding the benefits of high definition.
- The HD business model is still fuzzy for general interest TV channels.
- HD programme production is being blocked by the chicken or the egg dilemma that is weighing on the industry as a whole.
At a time when growth is being fuelled by pay-TV services, the introduction of HD-DVD players later this year could give the market a boost, as could HD versions of the Olympic Games in Beijing in 2008 and of the European football championships. Added to this, the launch of a free to air HDTV service could provide the much-needed breakthrough to increase viewers' exposure to high definition services.
HDTV in Europe in brief
- Deployment levels in Europe
- Lessons to be learned from HDTV rollouts in the US and Japan
- Choosing between networks: satellite, terrestrial, cable, IPTV, Internet
- HDTV offer strategies
- HD programme availability
- Uncertainties surrounding HD devices
- Growth outlook for HDTV in Europe
Issues
- HDTV media chain
- Production
- TV channel & platform
- Networks
- Devices
- Pay-TV
- Free to air TV
Key questions
- What lessons can be learned from HDTV deployments in the US and Japan?
- HDTV in Europe: on which network?
- How to encourage an expansion of HD content?
- What conditions are needed for a migration to a free HDTV offer?
- What leverage can be used to kick start the market?
Who should read this report?
TV channels and media groups
- Pay-TV operators: generate ARPU, attract subscribers and/or cement their loyalty?
- Is it in generalist channels' interest to migrate to HD?
Regulators
- DTT, should they wait for the analogue switch- off in 2010?
Operators: telcos, ISPs, satellite, cable, terrestrial
- Satellite shifting to free HDTV services?
- What positioning for IPTV with respect to HD?
Equipment-makers
- What will be the next HDTV viewing devices?
- How to rationalise the offer to consumers?
Investors and analysts
- HD's development prospects in Europe
- Its impact on players along the media chain
Europe's HDTV market is in its early days: although estimates point to 10 million households equipped with an HD-ready TV set by the end of 2006, only a fraction of them will actually be consuming HDTV services.