Skip to main content

Global Pay-TV Market will Reach $270 Billion by 2017

Incumbent U.S. pay-TV service providers would rather forget 2013 -- since it will be remembered as one more year where the major MSO cable operators collectively reported hundreds of thousands more video subscriber disconnects and service downgrades each and every quarter.

In urban markets throughout America, price-sensitive consumers abandoned traditional pay-TV service and turned to a combination of free over-the-air broadcast digital television and subscription streaming OTT video entertainment offerings -- such as Netflix and Hulu.

In some markets Telco challengers gained new pay-TV subscribers with limited-term lower-price service bundle promotions. However, once the promotions expire, some of these subscribers fail to convert to full-price customers. The story is very similar in other saturated markets all around the world.

Global Pay-TV Subscription Market in Transition

Infonetics Research released findings from its latest "Pay TV Services and Subscribers" market study and associated report -- which forecasts and analyzes the cable TV, satellite TV, and telco internet protocol television (IPTV) services markets.

"Telco IPTV operators AT&T, China Telecom, and Deutsche Telekom continue to enjoy strong growth in new subscribers and ARPU, showing that competitive providers with differentiated services can successfully steal share away from incumbent cable operators," notes Jeff Heynen, principal analyst for broadband access and pay-TV at Infonetics Research.

According to the Infonetics assessment, whether it's an improved user interface, multi-screen video, or even DVR services, there are marked differences that have allowed telcos to grow their subscriber bases at a time when other pay-TV providers aren't growing at all.


Highlights from the market study include:
  • Worldwide video service revenue, including cable and satellite pay TV and telco IPTV, grew again in the first half of 2013 (1H13), to $110 billion, a 2 percent uptick over the second half of 2012.
  • Telco IPTV and satellite revenue continue to rise, thanks to new subscribers and increased ARPU in the critical regions of North America and Western Europe.
  • Meanwhile, cable revenue market share fell another percent in 1H13, primarily due to a slowdown in subscriber growth in the lucrative North American market, where video subscribers are declining at a pace of 1.5 to 2.5 percent annually.
  • The dominant satellite service provider, DirecTV, remains the pay-TV revenue market share leader in the first half of 2013.
  • By 2017, Infonetics expects the global pay-TV market to hit $270 billion, a 2012-2017 compound annual growth rate (CAGR) of nearly 5 percent.

Popular posts from this blog

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul

How Cloud Fuels Digital Business Transformation

Across the globe, many CEOs invested in initiatives to expand their digital offerings. User experience enhancements that are enabled by business technology were a priority in many industries. Worldwide end-user spending on public cloud services is forecast to grow 21.7 percent to a total of $597.3 billion in 2023 -- that's up from $491 billion in 2022, according to the latest market study by Gartner. Cloud computing is driving the next phase of digital transformation, as organizations pursue disruption through technologies like generative Artificial Intelligence (AI), Web3, and enterprise Metaverse. Public Cloud Computing Market Development "Hyperscale cloud providers are driving the cloud agenda," said Sid Nag, vice president at Gartner . Organizations view cloud computing as a highly strategic platform for digital transformation initiatives, which requires providers to offer new capabilities as the competition for digital business escalates. "For example, generativ

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year