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High Definition DVD Demand within Europe

European expenditure on Consumer Electronics (CE) in 2007 is estimated at 75 billion Euros. High Definition will help revitalize CE's many product segments over the coming years, according to the market study by Understanding & Solutions.

High definition broadcast subscriptions are still in their infancy and many consumers believe that they are watching in HD -- just because they own an "HD Ready" television.

- UK: <4 percent of Sky subscribers take HD services; 4.5 percent of Virgin subscribers take HD services.

- France: <2 percent of CanalSat subscribers take HD.

- Italy: 1.2 percent of Sky Italia subscribers take HD.

Lack of original HD content for broadcast provides an opportunity for Hi Def discs. European revenues from online video will make no real impact for at least 5 years, so Hi Def has an essential role to play in bolstering the declining DVD market.

- Hi Def DVDs will account for 27 percent of the home video market value by 2011.

- By 2011, online video will still only account for 6 percent.

Despite much higher profit margins for online video, high definition disc sales will still derive double the revenue for studios in 2011, once again according to the Understanding & Solutions market assessment.

- European online video sales will yield around 70 perceent margin for studios -- or 525 billion Euros.

- European high definition disc sales will yield around 35 percent margin -- or more than 1.1 billion Euros.

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