Skip to main content

Market Fragmentation Shifts Pay-TV Balance of Power

The big news this week in the U.S. market was the Netflix Q1 2011 results, which demonstrates that we continue to witness a period of significant transition within the realm of video entertainment market leadership.

That said, perhaps there's still an upside opportunity for legacy channel-centric pay-TV service providers that invest the time and effort to prepare for the apparent market segmentation challenges -- as on-demand services continue to gain market share.

Furthermore, while some of the world markets with a historically vibrant broadcast TV viewership have lost momentum, or are already showing signs of a major contraction, other emerging markets show promise.

In some regions of the world, market fragmentation is shifting the balance of power -- and the associated video entertainment revenue streams -- as a growing segment of consumers search for lower-cost alternatives to legacy pay-TV services.

Global Pay-TV Markets in Transition

As a result of the changes within the global economy over the last few years, pay-TV subscriber numbers had been negatively impacted. Today, few in the video entertainment industry dispute the new market realities.

However, the situation seems to be improving -- as the total number of pay-TV subscribers by year-end 2010 were greater than year-end 2009 by a little over 6 percent, according to the latest market study by In-Stat.

"Nearly every region showed gains or held their own in 2010. However, cable providers were impacted, to at least some degree, by a migration to satellite and/or IPTV in virtually every region," said Stephanie Pickering, Industry Analyst at In-Stat. "Only Western Europe showed any gains in the total number of cable TV subscribers."

In-Stat's latest market research insight includes:

- China has the largest number of pay-TV subscribers with over 160 million. Shanghai Media SiTV is the largest operator; however, no other pay-TV operator has more than 5 million subscribers.

- The largest regional market of IPTV subscribers is Western Europe with nearly 17.5 million subscribers, of which France has nearly 11 million, led by CanalSat-TPS (Vivendi) and Free (iliad).

- Net Servicos de Comunicacao of Brazil is the largest cable service provider in the Caribbean and Latin America region.

- AT&T went from the sixth largest IPTV operator in the world at the end of 2009 to the fourth largest in 2010.

Popular posts from this blog

Global Rise of Domestic Payment Ecosystems

Alternative Payment Methods (APMs) – comprising digital wallets, instant payments, and QR payment systems – are experiencing explosive growth that's reshaping the global financial services marketplace. According to the latest worldwide market study by ABI Research , the combined global transaction value for APMs is projected to reach $142 trillion by 2030. What's particularly fascinating is the underlying driver behind this trend: a growing desire for financial sovereignty, with nations developing domestic payment ecosystems rather than remaining dependent on international financial networks. Payment Ecosystem Market Development In 2024, approximately 45 percent of the global population used digital wallets – a remarkable adoption rate for a technology that barely existed a decade ago. China leads this transition, with 95 percent of its population using WeChat's payment functionality. WeChat exemplifies the "super app" phenomenon, where payment capabilities are in...