Pay-TV Market to Reach $236B by Yearend 2012

  • IPTV
  • TV Everywhere
SINGAPORE - ?The worldwide pay-TV market will continue to grow, generating service revenues of $236 billion by the end of next year, according to a new study by ABI Research. Cable TV operators continue to face increasing competition from IPTV and over-the-top (OTT) services, as increasing broadband penetration and the growing number of people using Internet-connected devices support subscriber growth in IPTV and OTT services.

“Cable TV services will still dominate the overall pay-TV market, although this segment’s market share is expected to slightly decrease from 2011. Cable TV service revenue will account for 48.6 percent of total pay-TV revenue in 2012,” says Jason Blackwell, ABI's practice director for digital home.

“In North America, where cable TV penetration is nearly saturated, cable companies are losing TV subscribers. However, the continuous growth of the cable TV market in other regions will drive global cable TV revenue to increase in the coming years. In the emerging markets, cable TV will be a better choice for consumers due to its relatively low pricing,” says Khin Sandi Lynn, broadband research analyst.

Pay-TV operators are finding new ways to improve customer loyalty and raise average revenue per user. One new approach is offering multiscreen TV services (aka TV Everywhere), which allow consumers to receive TV content on Internet-connected devices such as iPhones and iPads. Pay-TV operators that have introduced multiscreen services include French IPTV giant Orange, cable operator B.net in Belgium and U.K. satellite TV operator BSkyB.

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