Digital terrestrial television (DTT) will grow from an estimated 37m households in 2006 to 131m by the end of 2011, according to US market researcher IMS.
Driven by DTT uptake in Western European countries, the Europe, Middle East and Africa (EMEA) region will comprise nearly 62% of worldwide DTT households by 2011, IMS predicts.
Analyst Mark Meza said: "The success of DTT in Europe is due in large part to government and industry initiatives, a growing selection of content, and increasingly affordable set-top boxes."
He continued: "This success has created an opportunity for value-added paid DTT services, such as Top Up TV in the UK. Paid DTT services have a distinct advantage in markets where a free DTT service has been successful.
"Standalone pay DTT services face greater challenges in establishing subscribers, often due to limited content offerings and pricing that is not competitive with other pay TV options. An example of this is the difficulty faced by USDTV, which recently filed for Chapter 7 bankruptcy after securing only about 10,000 subscribers in 3 years of operation, as well as early launches of pay-DTT in the UK."
With the continued growth expected for DTT worldwide over the next five years, IMS Research predicts an accompanying rise in value-added pay-DTT offerings.
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