“As a result of increasing competition from OTT (over-the-top) players and the service providers themselves using broadband video as a lower-priced offering, we believe overall video services ARPU and revenue growth will be constrained and, accordingly, have reduced our 2017 pay-TV revenue forecast by 35 percent globally, from $401 billion to just under $260 billion,” advises Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research.
Pay-TV Market Highlights
- The global pay-TV market (cable and satellite TV, telco IPTV) totaled $221 billion in 2013, a 5 percent gain from a year ago
- Growth resulted from pay-TV providers in mature markets increasing average revenue per user (ARPU) among slow-growing/declining subscriber bases, and from operators in emerging markets continuing to see significant subscriber growth
- Pay-TV subscribers grew 5 percent in the second half of 2013 (2H13), to 756 million subscribers, with the strongest growth coming from the telco IPTV segment
- DirecTV is the global market leader for pay-TV service revenue; The satellite TV provider has one of the highest ARPUs in the industry, which is helping it offset a slowdown in net new subscribers
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