According to statistics published today by the industry trade association Cable Europe, European cable revenues rose by more than EUR1 billion (USD1.08 billion), or 4.6%, to EUR21.5 billion in 2014, as the region’s tight focus on investment-driven innovation bore fruit for European cablecos. Using the platform of the Cable Congress in Brussels, the trade association said that rising revenues are attributable to continued investments in high speed broadband networks, new platforms and services, as the cable industry challenges both incumbents and new market players. According to the group’s findings, broadband turnover increased 9.0% last year and telephony sales were up 5.3%. As a result, telephony and internet now comprise 50% of cable’s total revenues, it claimed. Furthermore, Cable Europe reported net gains of more than 2.7 million Revenue Generating Units (RGUs) – the industry metric for the total sum of TV, internet and telephony subscribers – last year, boosting the total by 2.4% to 112.5 million. Additionally, whilst the association noted a downturn in total cable TV subscriptions, it said that total TV revenue rose 2.0% in line with an industry-wide switch to digital TV services.
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 [OTT} 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.’