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Strategy Analytics: HDTV Will Reach 2.6 Million European Homes By 2008 (2/3/2004)

Report Recommends Establishment of European HDTV Forum To Coordinate Industry Efforts

For Europeans, it's a case of 'second time lucky'. More than a decade after the first attempt to launch such a service, High Definition Television (HDTV) is once again appearing on the agenda of broadcasters and consumer electronics manufacturers across the continent. The report, "HDTV In Europe: This Time It's For Real," released by Strategy Analytics' Connected Home Devices service, describes how HDTV will eventually reach millions of European homes.

According to the latest estimates from Strategy Analytics, Europeans bought 70,000 HDTV displays in 2003, and demand is growing rapidly as consumers buy the latest LCD and plasma flat panel displays. By 2008 the analysts predict that 17.4 million homes will have HD-capable TV sets; 2.6 million of these homes will have bought set-top boxes to receive HD broadcasts.

Europe's first HDTV broadcaster, Euro1080, has just launched a satellite-based service offering a carousel of four hours of programming per day. Other broadcasters are known to be examining the opportunity, but have made no commitments as yet. In spite of this, Strategy Analytics believes that the beginning of mainstream HD programming in 2006 will drive a further wave of adoption.

"Europeans are now watching their US rivals with some degree of envy," notes David Mercer, Principal Analyst at Strategy Analytics. "In spite of the difficulties the Americans have faced in launching HDTV, demand there is now growing steadily. Europe realises it cannot afford to be left behind."

This report identifies the challenges and opportunities that lie ahead for the European HDTV industry. It recommends that industry players such as manufacturers, programmers and broadcasters establish a European HDTV forum to coordinate standards and avoid unnecessary market fragmentation.

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