Sales and rentals of DVD "packaged goods" will be the key growth driver for electronic entertainment in the five largest European countries, with locally-produced content representing the fastest growing DVD segment. Hollywood studios are also reporting strong growth for sales of movie DVDs in the UK, Germany, France, Italy and Spain.
Consumers in these five major European markets are migrating away from traditional analog broadcasting to digital pay-TV services, but free-to-air digital terrestrial services will show the strongest growth rates, according to In-Stat. The number of households receiving digital terrestrial services in these markets will jump from 4.9 mln in 2004 to 23.7 mln in 2009, the high-tech market research firm says.
Growth of cable TV will be flat to slightly negative; satellite TV services will pick up about 6%. Digital terrestrial will grow from about 4.1% of TV households during 2004, up to nearly 20% by 2009. The value of DVD sales and rental markets in the five major European markets was about $9.3 bln during 2004, and will grow to nearly $17 bln in 2009.