Pay-TV revenues to outstrip spot ads in Europe by 2005

LONDON - Pay-TV revenue will outstrip spot ad revenue in Europe by 2005 making it the largest component of the TV economy, according to a new report from ZenithOptimedia.

The report claims that revenues derived from spot advertising will slow, growing by 33% in real terms between 2003 and 2012, compared with 43% in the preceding decade. But the corresponding increase in pay-TV is predicted to rise 58% over the same period.

ZenithOptimedia said it believes that TV's share of ad revenue sneaked ahead of that from newspapers in 2003 with both media taking 33% each. However Europe's public service broadcasters have been excluded from this growth, with the share of TV ad revenue taken by the public broadcasters in the five largest markets falling from 24% in 1993 to 17% today.

"Nearly all this decline comes out of France, Germany and Spain, where private channels have successfully targeted younger viewers, often with imported and reality-format content, and commanded big premiums for their airtime as a result," the report claims.

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