Skip to main content

HDTV Anticlimax in the German Marketplace

The closure of two German HDTV channels has cast a shadow over European hopes for a rapid transition to High Definition Television, according to analysis published by the Strategy Analytics Broadband Network Strategies service.

Their report entitled "HDTV Channels Shut Down: A Sign of Things to Come?" concludes that Europe's television providers should concentrate their resources initially on building pay television rather than advertising based business models in order to reach the critical mass of HD content and receivers necessary to make HDTV a self-sustaining business.

ProSiebenSat1, one of Germany's leading commercial television broadcasters, closed its two HDTV channels on February 15th after concluding that audience figures were insufficient to justify their continued transmission. The decision leaves Germany with only a handful of HD channels, most of them only available to pay TV subscribers.

"It was always highly ambitious to expect advertising revenues alone to support HD channels in the early years," comments David Mercer, Principal Analyst. "Significant audiences cannot be built until the market has been seeded with millions of HD receivers -- and this was always going to take a number of years."

The report finds that only 5 percent of Europeans who currently own an HD-Ready TV are, in fact, watching HDTV channels. In spite of these early difficulties, the report concludes that the number of European HDTV subscribers will grow steadily towards 3.5 million by the end of 2008.

By 2012, Strategy Analytics predicts that 20 percent of all European households will be watching HD channels.

Popular posts from this blog

Enterprise AI Coding Agents Gain Momentum

What started as a convenience tool for developers writing faster software boilerplate code has evolved into something considerably more consequential: an autonomous layer of software engineering capability that is beginning to restructure how organizations design, build, and govern technology at scale. Gartner's latest market study and analysis of this market makes one thing clear. This is no longer a story about productivity enhancement at the margins. It is a story about competitive realignment at the platform level, with trillion-dollar implications for the vendors who supply these tools and the enterprises deciding which ones to trust with their core development infrastructure. AI Coding Agents Market Development The scale of the market alone signals how far this category has matured. Enterprise AI coding agents are now capturing a growing share of enterprise software engineering spend, with the market estimated at roughly $9.8 billion to $11 billion annualized as of April 2026...