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

Banking as a Service Gains New Momentum

The BaaS model has been adopted across a wide range of industries due to its ability to streamline financial processes for non-banks and foster innovation. BaaS has several industry-specific use cases, where it creates new revenue streams. Banking as a Service (BaaS) is rapidly emerging as a growth market, allowing non-bank businesses to integrate banking services into their core products and online platforms. As defined by Juniper Research, BaaS is "the delivery and integration of digital banking services by licensed banks, directly into the products of non-banking businesses, commonly through the use of APIs." BaaS Market Development The core idea is that licensed banks can rent out their regulated financial infrastructure through Application Programming Interfaces (APIs) to third-party Fintechs and other interested companies. This enables those organizations to offer banking capabilities like payment processing, account management, and debit or credit card issuance without