Market researchers Understanding and Solutions recently took a close look at the home entertainment market in Europe, and reported the following to Dolby Laboratories in the U.K.DTVWith just over a million digital satellite customersñaround 10 percent of the marketñFrance is Europe's leading digital TV market. This is predicted to rise to around 20% by 2003, with digital cable reaching 10 percent. Terrestrial digital TV will be launched in France in 2002. While slow to start in Germany, digital satellite, cable and terrestrial will have significant market penetration market by 2003, with satellite and cable in just under a million homes each, and terrestrial digital TV in just under 750,000. Launched this year, digital terrestrial TV in Spain is expected to be in around 1.7 million homes, or 17 percent of the market, by 2003. Digital satellite and cable are not expected to grow as rapidly, reaching 500,000 homes and 200,000 homes respectively. Two digital services, Sky Digital and ONdigital, have now been launched in the U.K., and by 2001 it is estimated that cable, satellite, and terrestrial digital will each reach 750,000 homes, a penetration of 10 percent.DVDBy 2005, it is expected that 12.4 percent of European households will have DVD-Video, with 14.1 percent in the U.K. in particular. Annual sales of DVD-ROM drives in Europe are expected to surpass CD-ROM sales in 2001 (worldwide, they have already done so). By 2002, sales of DVD-ROM drives are forecast to reach 28.5 million units in western Europe.Home TheatreOn a percentage basis, the leading market for home theatre continues to be the Netherlands, with systems in 18 percent of homes, followed by the U.K. and Germany with 16 percent and 12 percent respectively. In France, 6 percent of households currently enjoy home theatre, while Italy and Spain have been slower to develop, with around 3 percent of households equipped in each country.