European Video-Over-Broadband Has Arrived, but It Will Bring Limited Returns to Telcos and BSPs, Says Yankee Group
Analysis of Europe's telco video opportunity discovers slim pickings
LONDON--(BUSINESS WIRE)--Aug. 2, 2004-- Video-over-broadband is on the agenda of every incumbent and most second-tier broadband service providers in Western Europe, and it is already up and running in several markets. Yet these services will not generate significant revenue or profits in the medium term, according to the Yankee Group report, Tough Challenges Ahead for Europe's Video-Over-Broadband Providers.
Video-over-broadband (VioBB) has arrived in Western Europe, with incumbent DSL operators in France, Germany, Italy and Spain either introducing or stepping up existing video content offerings, marking the entry of a fourth digital platform into Europe's pay-TV marketplace.
"VioBB providers are facing significant challenges," says Jonathan Doran, Broadband & Media Europe senior analyst. "Entrenched competition from cable and satellite, a lack of technical standards for the new platform, and an array of under-developed business models are causing uncertainty and a lack of cohesion among the various VioBB strategies."
Video will provide an important enhancement to the broadband value proposition, and revenue is projected to grow seven-fold from less than EURO100 million in 2003 to nearly EURO1 billion in 2008. However, Doran concludes, "these services will account for only 3.4 percent of BSP revenue by the end of the forecast period and will not be profitable in the medium term."
The report highlights recent developments in VioBB, examines the different approaches BSPs are taking to service implementation, and assesses the overall market opportunity, concluding that despite the anticipated increase in take-up of broadband video services, the financial rewards will remain limited.
PRESS CONTACT
For interviews contact Jonathan Doran, jdoran@yankeegroup.com
THE YANKEE GROUP (http://www.yankeegroup.com)
The Yankee Group is the global leader in communications & networking research and consulting. The company helps businesses understand the opportunities, risks and competitive pressures of developing, deploying and consuming products and services that drive communication or information exchange. Now in its fourth decade, the Yankee Group is based in Boston with offices throughout North America and Europe.
Contacts
The Yankee Group
Kimberly Vranas, 617-880-0214
kvranas@yankeegroup.com
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