Industry’s tight focus on investment-driven innovation yields more than €1 billion in new revenues
(Brussels, 11 March) In an era of intense platform competition, content convergence and audience fragmentation, the European cable sector grew top-line revenues to €21.5 billion in 2014, up 4.6%, according to new IHS statistics released today by the industry’s trade association, Cable Europe, at Cable Congress in Brussels. The more than €1 billon increase in annual revenues came on the back of cable’s continued investments in high-speed broadband networks, new platforms and services as it challenges both incumbents and new market players.
Cable’s connectivity-driven growth continued with a 9% increase in broadband revenues and a 5.3% rise in telephony revenues. Telephony and internet new comprise 50% of cable’s total revenues. In addition, more than 2.7 million Revenue Generating Units (RGUs), the industry metric for the total sum of TV, internet and telephony subscribers, were added in 2014, up 2.4% and now totalling 112.5 million. Despite a net loss in cable TV subscribers, total TV revenues increased by more than 2% in 2014 as the switch to digital services accelerated. With 6% growth in digital TV revenues and a more than 13% uptick in video-on-demand revenues almost 75% of total TV revenues are now digital.
Manuel Kohnstamm, President of Cable Europe, commented: “Our sector is growing through a time of tremendous change both in terms of the speed of technological development and new market entrants. Over-the-top players delivering services through the internet are reinventing business models and shaking up the traditional competitive scene. Consumers on the other hand expect affordable prices, good quality service and great content. Our smart investments to build superior networks are paying off in the form of state-of-the-art broadband access and a better-than-ever content experience.”
“Cable’s 2014 performance is particularly impressive in the face of increased competition from new entrants and alongside a new generation of digital savvy consumers, added Cable Europe Executive Chairman Matthias Kurth. “We are the main challenger to the telco incumbents in most member states across Europe. But we’re not only making massive investments to take on the traditional competitors, our smart pipe is actually enabling the emergence of new ‘frenemies’ in an era where broadband internet has become a primary mode of content distribution. Our future success will hinge on
continued technology, infrastructure and service investment, a favourable regulatory environment, and deeper partnerships with global content providers.”
Cable Congress 2015 is taking place in Brussels until Friday 13 March. Please visit www.cablecongress.com for the latest updates, talk to us on Twitter via @CableEurope, and follow the conversation live using #cablecongress.