Revenues generated from interactive television (iTV) betting, gaming and lottery services will generate â‚Ź4.1 billion a year in Western Europe by 2007, according to a recent report by Screen Digest.
The report says that operators’ gross margins, after winnings have been paid out, could reach â‚Ź709.1 million by this time. “Such numbers suggest that the industry’s search for a killer application could be over,” proposes Screen Digest.
As subscriber growth for Europe’s largest pay-TV operators slows, increased average revenues per user (ARPUs) will become ever more important, it says. Revenues from iTV betting, gaming and lottery, along with those from pay-per-view movies and sports, will be vital to the success of pay TV operators. At the same time, iTV applications are viewed as an essential tool for reducing customer churn – the proportion of customers cancelling their subscriptions.
The UK market, benefiting from regulatory reform, will be by far the largest single contributor to the European total in this sector, generating over â‚Ź2.6 billion in turnover by 2007, with a gross margin for operators of â‚Ź387.1 million.
Betting via iTV on sports and horseracing events will be the largest contributing channel, with almost â‚Ź1.6 billion annual turnover by 2007. Casino style applications will generate â‚Ź1.4 billion in revenues by this time, forecasts Screen Digest.
The report’s author, Arash Amel, says: “Whilst many types of iTV service, such as interactive games, advertising and enhanced television applications have proved popular, very few have been lucrative. To this end, iTV betting, gaming and lotteries offer operators some hope.”
