Over-the-Top Video Doesn't Keep Pay TV Market From Growing

  • Online Video
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CAMPBELL, CA - Worldwide revenue for pay TV services, including IPTV, cable and satellite, grew by 11 percent in 2010 to $240 billion, says a new report by research firm Infonetics Research.

IPTV experienced the strongest revenue growth (up 45 percent in 2010), followed by satellite video services (up 13 percent). Cable video services continue to make up by far the largest portion of total video service revenue, but growth in the cable video service segment is slowing.

The industry remains highly concentrated, with the top 20 companies accounting for 53 percent of total revenue. DIRECTV is the global leader for video service revenue, with the highest video average revenue per user (ARPU) in the industry. With more than 22.8 million video service subscribers, Comcast maintains its lead in the race for subscribers.

In 2010, the fastest-growing video services markets were in Asia Pacific and Central and Latin America, driven by analog-to-digital conversion activity and strong new subscriber growth in markets such as Brazil, India, Malaysia, and Mexico.

Notes Teresa Mastrangelo, directing analyst for video at Infonetics Research, "We're seeing continued growth in the pay-TV market, driven by providers' ability to offer voice/video/data service bundles, a broad range of linear and on-demand content, and advanced services such as multiroom DVR and multiscreen video delivery. Although cable MSOs continued to be challenged by competition from IPTV and satellite operators, the overall market remains robust, despite the attractiveness of over-the-top services."

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