Skip to main content

Global Pay-TV Forecast to Reach $317.5 Billion in 2019

The traditional video entertainment industry in developed nations had a difficult period of transition last year, as retail sales of content on DVD and Blu-ray discs was either flat or declining, and pay-TV revenues were somewhat spotty. The days of huge gains appear to be over in many of the key saturated markets.

Regardless, some industry analysts remain hopeful for a market recovery.

The global pay-TV subscriber base increased by a little more than 5 percent in 2013, raising the total to 901.1 million. However the average revenue per user (ARPU) dropped to $23.80 in 2013 -- from $24.10 in 2012.

"In general, the pay-TV market grew both in terms of subscribers and service revenue across all pay-TV platforms. Overall pay-TV service revenue reached almost $250 billion in 2013," said Jake Saunders, vice president at ABI Research.

Pay-TV ARPU in North America increased around 4 percent to $76.00 in 2013. According to legacy pay-TV operators, the growth in ARPU is due to a growth in the proportion of customers with advanced pay-TV set-top boxes and upgraded High-Definition programming packages.

Unfavorable currency exchange rates in Latin American countries have contributed to a US Dollar equivalent decline in the pay-TV ARPU for the region at the end of 2013 to $34.6 (5 percent reduction from 2012).

Subscription of HD-TV services continue to grow in 2013 accounting for 41 percent of total pay-TV subscriber base in 2013. ABI forecasts that the subscriber base of HD-TV services will continue to increase to 57 percent of total pay-TV subscribers in 2019.

As competition in the pay-TV market has increased, operators continue to offer more HD programing services, advanced set-top boxes and innovative services in the hope of boosting pay-TV ARPU.

ABI anticipates that the worldwide pay-TV subscriber base will reach 1.1 billion subscribers in 2019. In particular, the increasing broadband connectivity will help the nascent IPTV market growth.

The IPTV market is likely to grow at a CAGR of 9 percent over the next five years to reach 160 million subscribers in 2019. The growth typically comes from short-term discount promotions -- where the telco gains the subscribers of the incumbent service provider. Few IPTV subscribers are actually new to pay-TV.

The global pay-TV market is expected to generate $317.5 billion in 2019, according to the current forecast by ABI Research. But this estimate likely assumes no further market disruption -- or erosion of subscriber base -- by the advancing movers and shakers in the low-cost over-the-top (OTT) video entertainment sector.

Popular posts from this blog

The Subscription Economy Churn Challenge

The subscription business model has been one of the big success stories of the Internet era. From Netflix to Microsoft 365, more and more companies are moving towards recurring revenue streams by having customers pay for access rather than product ownership. The subscription economy cuts across many industries -- such as streaming services, software, media, consumer products, and even transportation with the rise of mobility-as-a-service. A new market study by Juniper Research highlights the central challenge facing subscription businesses -- reducing customer churn to build a loyal subscriber installed base. Subscription Model Market Development The Juniper market study provides an in-depth analysis of the subscription business model market landscape and associated customer retention strategies. A key finding is that impending government regulations will make it easier for customers to cancel subscriptions, likely leading to increased voluntary churn rates. The study report cites the