Global telco TV revenue to hit $17bn in 2010

“Telco TV market growth was strong in 2009. As a result, service revenue for the global telco TV market increased to nearly $12 billion in 2009 and will increase to nearly $17 billion by the end of 2010,” says Serene Fong, industry analyst at ABI Research. Western Europe generates the largest share of global revenue which will continue to grow from $6.8 billion in 2009 to $18.4 billion in 2014, a 22 per cent compound annual growth rate (CAGR).

Telco TV service revenue in the Asia-Pacific region is expected to reach $8 billion by the end of 2014, representing a 45.5 per cent CAGR from 2009 to 2014. The increase in service revenue is due to growth in both the number of subscribers and the ARPU. In the Asia-Pacific region, Japan, South Korea and India saw significant increases in telco TV ARPU and service revenue and we forecast that the Japanese telco TV market will approach $3 billion service revenue by the end of 2014.

France Telecom, Iliad, AT&T and Verizon are leaders in telco TV markets. Verizon added 191,000 telco TV subscribers in 3Q 2009 alone, reaching 2.7 million viewers. Telco TV operators are trying to improve subscription growth by introducing new product features. For example, Korea Telecom, SK Broadband and LG Dacom are planning to add new channels to their telco TV services. Improved service quality would help to maintain the existing service price for telco TV subscriptions that would in turn help to increase ARPU and service revenue.

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