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ABOUT THIS REPORT

This new Screen Digest report profiles the growth of interactive TV (iTV) services, analysing the availability and prospects of betting and gaming applications in key European markets. It includes a unique forecast model, offering territorial revenue forecasts until 2007 and an exclusive analysis of gross margins by application type.

With digital TV launched in all Western European territories, operators are now looking to develop attractive interactive TV (iTV) services to generate new revenue streams and reduce customer churn. So far, iTV betting, gaming and lotteries (iTV BG&L) has proved itself to be one of the more financially lucrative iTV applications. As the number of European digital TV household continues to increase, BG&L service providers, both private companies and state-run monopolies, are starting to look at the potential of iTV services. Indeed, iTV BG&L is coming to take its place alongside traditional online and telephone services as an important part of a three-pronged interactive strategy. It is opening the door to fresh, hitherto untapped players. To this end, the interactive TV betting, gaming and lotteries (iTV BG&L) market in Europe is facing a period of growth.

KEY POINTS

• Lotteries will play an important role, as Europe’s national lottery operators seek to build on the development of online services by offering TV-based alternatives. By 2007, iTV lotteries will account for over €1bn turnover.
• The second largest single market is set to be France. By 2007, we believe that the French iTV BG&L will have a turnover in excess of €500m. The bulk of revenues will come from sports betting, although lotteries will be catching up rapidly.
• The UK market, benefiting from regulatory reform, will-according to our forecasts-be the largest single contributor to the European total. The bulk of the revenue will be generated by iTV bingo and casino-style games.
• In Europe as a whole, betting via iTV on sports and horseracing events will be the largest single contributing channel.