Video Services Market to Top $250B in 2014

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CAMPBELL, CA -- New video services mean both good news and bad news for video service providers, according to a new report from Infonetics Research. The good news is the incremental revenue from video on demand, digital video recording and 'start-over' services. The bad news is the continued rise of over-the-top viewing (Hulu and similar services), which may encourage consumers to "cut the cable cord." Increased competition among video service operators will also keep monthly subscription fees in check, according to  Jeff Heynen, directing analyst for broadband and IPTV at Infonetics Research.

Report highlights include:

  • Worldwide revenue  for IPTV, cable video and satellite video services is forecast to top $250 billion in 2014

  • Average revenue per user (ARPU) for telco IPTV services in most regions remains lower than ARPU for cable and satellite services

  • Still, telco IPTV service revenue is forecast to grow nicely over the next five years, good news for service providers trying to stem the loss of revenue from decreasing fixed access lines

  • Operators such as AT&T, Verizon, Belgacom, Deutsche Telekom, Orange, Iliad, and China Telecom are adding video subscribers at a rapid clip, selling them on a combination of exclusive content, higher picture quality, and introductory rates that are below similar offerings from cable and satellite service providers.

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