Skip to main content

The Global Pay-TV Market Reaches $137 Billion

According to the latest market study by Infonetics Research, traditional pay-TV subscribers are now far less loyal than they used to be. That new independence has freed many from the expense of high-cost video entertainment services.

That being said, the cable TV industry is more characterized by churn than cord cutting, as subscribers take advantage of introductory pricing on satellite and IPTV subscriptions -- typically, that's 30-50 percent lower than their cable TV service fees.

Infonetics released excerpts from its "Pay-TV Services and Subscribers report," which forecasts and analyzes the telco Internet protocol television (IPTV), cable video, and satellite video services markets. Apparently, this is a market in transition, as the economy motivates more pay-TV subscribers to seek a better value for their money.

"Ongoing challenging economic conditions in the key revenue-generating markets of North America and Western Europe have resulted in slowing subscriber and revenue growth in the cable TV market," notes Jeff Heynen, directing analyst for broadband access and pay-TV at Infonetics Research.

DirecTV, Verizon, AT&T, and Virgin Media have all set their sights on existing cable subscribers -- and they're seeing their subscriber bases increase as cable TV subscriptions continue to shrink.


Highlights from the Infonetics study include:
  • The global pay-TV market (cable, satellite, and telco IPTV) totaled $137 billion in the first half of 2012 (1H12), that's a 9.4 percent increase over the same time last year.
  • By 2016, Infonetics expects satellite TV revenue to overtake cable TV revenue for the first time.
  • Global pay-TV service revenue is forecast by Infonetics to grow at a 7 percent CAGR from 2011 to 2016, spurred by emerging markets Brazil, Argentina, Mexico, Russia, India, and China.
  • Latin America, the smallest but fastest-growing pay-TV market, is on track to jump 23 percent this year to top $23 billion.
  • The number of global pay-TV subscribers will reach 719 million in 2012, that's up by 6 percent from 2011.
  • While cable subscribers continue to make up the lion's share (60 percent in 1H12) of pay-TV subscribers, growth is strongest in the telco IPTV segment, up 19 percent in 1H12 over 2H11.
  • Verizon and AT&T are neck-and-neck for revenue share in the fast-growing telco IPTV market, followed by France Telecom and Deutsche Telekom in Europe and NTT and CTC in Asia.

Popular posts from this blog

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

5G Fixed Wireless Access Revenue to Reach $24B

Available Internet access at an affordable cost is essential for everyone to participate in the Global Networked Economy. The deployment of fifth-generation (5G) wireless communications infrastructure is enabling the introduction of lower-cost broadband services in some markets. Fixed Wireless Access (FWA) allows mobile network operators (MNO) to deliver high-speed Internet connections in areas that have either insufficient or no prior wireline broadband access services. It's also used in urban, suburban, and rural areas where fiber optic communication is considered too expensive to install and maintain. With this new technology, MNOs have the potential to provide broadband capability at similar levels to fiber optic networks. Fixed Wireless Access Market Development Therefore, FWA can be used to supplement existing wired broadband Internet service offerings, provide additional broadband capacity, or act as a backup service for home or business applications. Although FWA is well es