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

Big Data Analytics Revenue to Reach $215.7 Billion

Across the globe, more leaders seek actionable insight from the customer data they've stored in huge data lakes. Worldwide spending on big data and business analytics (BDA) solutions is forecast to reach $215.7 billion in 2021 -- that's an increase of 10.1 percent over 2020, according to the latest worldwide market study by International Data Corporation (IDC). Moreover, BDA technology investment will likely gain momentum over the next five years as the global economy recovers from the COVID-19 pandemic. The compound annual growth rate (CAGR) for global BDA spending over the 2021-2025 forecast period will be 12.8 percent. Big Data Analytics Market Development "As executives seek solutions to enable better, faster decisions, we're seeing relatively healthy BDA spending across all industries. Leveraging data for insights into everything from internal business operations to the customer journey is top of mind and of strategic importance," said Jessica Goepfert, vice

Remote Working Drives Demand for Internet Access Solutions

High-speed internet access from home is essential to participate in the Global Networked Economy. The worldwide residential broadband service market reached a subscriber base of over 1.1 billion users in 2020 -- that's a 4 percent increase from the previous year. Clearly, the COVID-19 pandemic accelerated demand for broadband connectivity. The need for high-capacity residential broadband will remain, even post-pandemic. According to the latest worldwide market study by ABI Research, 5G Fixed Wireless Access (FWA) will be the fastest-growing residential broadband segment to increase at a CAGR of 71 percent, exceeding 58 million subscribers in 2026. Remote working, online learning, and virtual healthcare created new demand for high-speed broadband throughout 2020. The significant increase in the use of internet-based entertainment services also prompted broadband users to upgrade, while more households without broadband access subscribed for the first time. Residential Broadband Serv

Warehouse Robot Deployment Gains New Momentum

The retail and wholesale back-office infrastructure market is being transformed by technology. The warehousing industry has accelerated automation efforts due to the increased order volume and labor shortages driven by the global pandemic. In addition to technology solutions such as handheld devices with enhanced capabilities, autonomous, collaborative, and mobile robots are proving to be the fastest-growing productivity-enhancing solution in the warehouse workspace. Commercial Robotics Market Development According to the latest worldwide market study by ABI Research, global commercial robot revenue in warehouses will have a Compounded Annual Growth Rate (CAGR) of over 23 percent from 2021 to 2030 and exceed $51 billion by 2030. "Mobile robots are at the heart of the warehouse robotics market and account for most shipments and revenue. These robots, made up of Autonomous Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs), are being used to move goods within the warehouse a