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

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Top 10 CFO Priorities Require Rethinking Finance

The Chief Financial Officer (CFO) role is essential to digital business growth. While CFOs do not get closely involved in the tactical details of the digital transformation of their functions, they still recognize its strategic importance. According to the latest survey by Gartner, CFOs are faced with the challenge of balancing the need for substantive digital business innovation with financial cost control and risk management. "CFOs will be stretched thinly across many activities in 2023. The survey revealed a wide range of actions CFOs plan to either lead or be significantly involved with," said Marko Horvat, vice president at Gartner. Survey Findings: The Top Ten Priorities Cost Optimization - Cost reduction remains the top priority for CFOs as they look for ways to cut costs and improve efficiency in their operations. This includes identifying cost-saving opportunities through automation, outsourcing, and business process improvement. Business Continuity - The global C