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Cable Congress 2016: TV the key profit engine as ‘ambitious to deliver’ cable industry sees steady revs growth
Joseph O'Halloran
| 28 June 2016
cable congress 28 June 2016As the curtains rise on the industry’s yearly gathering, the European cable industry is growing, with total revenues up 7.1% year-on-year.
The growth has been revealed by research from HIS, which also shows that such expansion could be seen across the entire cable estate, namely Internet via broadband (10%), TV (5.5%) and telephony (7%). More than 4.2 million revenue generating units (RGUs) - the industry metric for the total sum of TV, Internet and telephony subscriptions - were added in 2015, now totalling 117.4 million.
While Internet and telephony contributed 51.9% of total RGUs, cable television was found to be continuing its role as the main source of profit for the industry, accounting for half of the €22.9 billion of revenue. Internet represents 31% of the industry’s income, up eleven percentage points compared to a decade ago. The research found that TV revenues are being driven by a strong appetite for digital subscriptions and video-on-demand (VOD). Just over three-fifths of TV subscribers were found to be now digital, generating just over three-quarters of TV revenue.
“The figures show cable is performing strongly despite – and possibly thanks to – the challenging competition with traditional and over-the-top players,” commented Manuel Kohnstamm, president of Cable Europe. “Our industry is best in class when it comes to combining variety of offer, quality of content and user interface. Investment in our networks and our dedication to great consumer experience have been the foundations of this success. And in the future, Europe will continue to be a vibrant market so cable must continue to facilitate development in related industries. It’s no longer just about being the hero of our own story. Now, it’s about the opportunity to become the hero of everyone else’s story too.”
Joseph O'Halloran
| 28 June 2016
cable congress 28 June 2016As the curtains rise on the industry’s yearly gathering, the European cable industry is growing, with total revenues up 7.1% year-on-year.
The growth has been revealed by research from HIS, which also shows that such expansion could be seen across the entire cable estate, namely Internet via broadband (10%), TV (5.5%) and telephony (7%). More than 4.2 million revenue generating units (RGUs) - the industry metric for the total sum of TV, Internet and telephony subscriptions - were added in 2015, now totalling 117.4 million.
While Internet and telephony contributed 51.9% of total RGUs, cable television was found to be continuing its role as the main source of profit for the industry, accounting for half of the €22.9 billion of revenue. Internet represents 31% of the industry’s income, up eleven percentage points compared to a decade ago. The research found that TV revenues are being driven by a strong appetite for digital subscriptions and video-on-demand (VOD). Just over three-fifths of TV subscribers were found to be now digital, generating just over three-quarters of TV revenue.
“The figures show cable is performing strongly despite – and possibly thanks to – the challenging competition with traditional and over-the-top players,” commented Manuel Kohnstamm, president of Cable Europe. “Our industry is best in class when it comes to combining variety of offer, quality of content and user interface. Investment in our networks and our dedication to great consumer experience have been the foundations of this success. And in the future, Europe will continue to be a vibrant market so cable must continue to facilitate development in related industries. It’s no longer just about being the hero of our own story. Now, it’s about the opportunity to become the hero of everyone else’s story too.”
