EMEA Free-to-air Services Market: High-speed Internet Users Grow in Numbers, Make FTA HD Streaming Easy Business

A widely fragmented EMEA free-to-air services market contains a huge scope of entry for new players. In 2015, close to 19.6% of the overall market’s value was taken up by the five players that led it – RTL Group, British Broadcasting Corporation, ITV Plc., Mediaset SpA, and Deutsche Telekom AG.

According to a research report published by Transparency Market Research, the EMEA free-to-air services market is expected to continue being a largely fragmented market. A lot of players are entering the market, especially in the segments of internet TV or pay TV in nations such as Austria, Germany, and the U.K. key players such as Sky TV are expanding their horizons through the formation of long-term partnerships. New players as well as established players are also making their way into the Middle East where the demand for FTA services is increasing at a very high rate. The EMEA free-to-air services market is expected to expand at a CAGR of 11.8% within a forecast period from 2016 to 2024, with regards to its value. At the end of 2016, the EMEA free-to-air services market is expected to reach US$63.98 bn, and is expected to reach US$155.8 bn by the end of 2024.

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High Speed Internet Paves Way for Better FTA Services

“The heavy usage of Internet services across the EMEA region has created plenty of opportunities for ISPs to provide super-fast, cheap Internet for a majority of their users. This is the foundation on which markets such as free-to-air services can prosper. There would be no significant usage of data-heavy services if it were not for larger bandwidths and quality services. This is more apparent in Europe but is also becoming a larger factor for the penetration of players from the EMEA free-to-air services market into the Middle East,” states a TMR analyst. The penetration of high-speed Internet has had a twofold positive effect on the EMEA free-to-air services market. While it has allowed for the streaming of HD videos and other FTA services, it has also allowed the players to penetrate the smartphone user pool. With the growing number of smartphone users switching to 4G and high-speed Wi-Fi services, it is becoming easier for free-to-air service providers to create smartphone apps that users can watch videos on.

UHD Implementation Still a Far Cry for EMEA FTA Players

Although the popularity of 4K and 8K videos, movies, and TV channels is gaining an extremely high demand across the EMEA region, the players in the EMEA free-to-air services market are still unable to successfully implement ultra-HD services for the majority of their users. The costs of airing UHD content is still too expensive for a lot of players as well as users, thereby severely restricting the revenue that players can achieve from this segment. The problem is complicated further as users, while finding difficulty in attaining UHD FTA services, can easily procure UHD televisions. This compels them to look to pay TV services, because while it means paying for TV subscriptions and bundles, it is still cheaper than the heavy data charges of streaming UHD videos.

“Providers of FTA services in the EMEA region can still gather massive opportunities of revenue generation through the use of analytics-based advertising. The growing demand for IPTV has given rise to a broader scope for internet advertising that is user-targeted rather than the generalized advertising available on pay TV. This is creating quite the buzz among marketing firms as it allows them to gain a greater visibility as well as the ability to directly link products or services for purchase,” adds the analyst.

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