
Digital TV is now used by 77 percent of all TV subscribers in the Netherlands. Ziggo was the largest digital TV provider in Q4, followed by KPN, UPC and CanalDigitaal. Most consumers receive digital TV via cable networks. Cable accounted for almost 57 percent of digital TV connections, although it lost some market share due to growing adoption of IPTV and FTTH services. Terrestrial and satellite were the second and third most popular digital technologies, but both also lost market share. IPTV and FTTH were able to up their share of the digital TV market, ending the quarter as the fourth and fifth largest technologies.
Digital TV growth was driven by an increasing number of operators offering triple-play services, such as Vodafone Netherlands offering services via FTTH networks. Another driver is 'second screen' TV services, which allow digital TV subscribers to watch TV also on their tablets, computers or mobile phones. The enhanced viewing experience, especially on tablets, may increase consumer interest in digital services and drive the shift away from analogue.
Most of the major Dutch TV providers have launched such services. KPN lead the way, adding live TV services to its mobile apps in September and launching a nationwide TV advertising campaign focusing on the second screen possibilities in March. Ziggo enhanced its iPhone/iPad app with TV services at the end of 2011, and KPN brand Telfort launched its own app in February of this year. UPC is also expected to follow soon with enhancements to its iPhone and iPad apps, possibly when it launches its broadband set-top box later this year.