Skip to main content

Remaining Upside Opportunities for Pay-TV Services

The legacy pay-TV services market can now be divided into two distinct groups. First, those regions where the market is fully saturated and customer churn is the primary activity. Second, the developing nations where local pay-TV providers can still find new customers willing and able to pay for their offerings.

According to the latest market study by ABI Research, the global pay-TV market added nearly 47 million new customers in 2012 -- reaching a total of 864 million subscribers.

"The growth in satellite, cable, and IPTV markets was strong, although digital terrestrial TV growth was flat in 2012. We expect that the pay-TV market will continue to grow in 2013 to reach 907 million subscribers," said Jake Saunders, VP and practice director at ABI Research.

The worldwide IPTV subscriber base has been increasing over the past few years. In 2013, the global IPTV subscriber base is expected to add over 9 million subscribers to reach 79.3 million.

More than half of the net addition of new subscribers will be from the Asia-Pacific region -- China alone is expected to add more than 3 million pay-TV subscribers.

The cable TV market will remain strong, especially due to the growth in Asian and Pacific markets, such as China and India. Across the globe, cable TV will maintain the largest market share of the overall pay-TV market in 2013.

However, the continued growth of lower cost IPTV service offerings will cause the cable TV market share to decline to 65.4 percent in 2013 from 66.2 percent in 2012.

So, where are the remaining untapped upside opportunities?

At present, only 33 percent of worldwide pay-TV subscribers are using High Definition (HD) TV services. HDTV penetration is the highest in North America (84 percent), followed by Western Europe (76 percent) -- these are the saturated markets.

HD adoption is one area of upside growth potential for the legacy pay-TV sector. The addition of an attractively priced OTT-like video-on-demand (VOD) steaming service is another potential opportunity.

As many of the countries in different regions are trying to switch over to digital TV transmission, the number of HD channels and packages offered by the pay-TV operators will likely increase.

Worldwide HD service adoption is expected to grow at a slow but consistent pace. ABI has forecast that 38 percent of global pay-TV subscribers will be using some HDTV services in 2013.

I believe that the big unknown is the ongoing introduction of video streaming services into the saturated pay-TV markets. Will the incumbent pay-TV service providers move more aggressively into this space, or will they continue to move cautiously?

The fear of revenue cannibalization will immobilize some service providers from expanding beyond their traditional offerings, while others will boldly seek a solution to those challenges and embrace the apparent trend towards IP-based fully on-demand multi-screen video entertainment.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Why Cloud-Native is The Future of IT Spending

The leading organizations that create a digital transformation plan will gain the most from their use of public cloud computing. However, some CIO and CTO leaders still struggle with how to build a modern cloud migration strategy. The worldwide cloud computing Infrastructure as a Service (IaaS) market grew 41.4 percent in 2021, to a total of $90.9 billion -- that's up from $64.3 billion in 2020, according to the latest market study by Gartner. "The IaaS market continues to grow unabated as cloud-native becomes the primary architecture for modern workloads," said Sid Nag, vice president and analyst at Gartner . Cloud IaaS Market Development Cloud supports the scalability and composability that advanced technologies and applications require, while also enabling enterprise leaders to address emerging needs such as sovereignty, data integration, and enhanced customer experience. In 2021, the top five IaaS providers accounted for over 80 percent of the market. Amazon AWS conti

Private 5G Networks and Enterprise Wi-Fi Converge

The global enterprise wireless networking market is evolving. Driven by a desire to take advantage of the available 6 GHz communications spectrum, with greatly improved broadband throughput and latency rates, more organizations may choose to adopt Wi-Fi 6E technologies. According to the latest worldwide market study by ABI Research, shipments of Wi-Fi 6E access points and routers will rise from 1.5 million units in 2022 to 5.2 million units by 2024. Wireless spectrum expansion is just one facet of the commercial wireless network market transition, as the technology of Wi-Fi customer premise equipment will be upgraded once again with Wi-Fi 7 (IEEE 802.11be standard) devices. Enterprise Wireless Network Market Development "The adoption of Wi-Fi 7 access points will accelerate following the protocols standardization in 2024, and just two years later, most 6 GHz enabled access point shipments will be supporting Wi-Fi 7," said Andrew Spivey, industry analyst at ABI Research . Anot