Telco gains boost pay-TV growth

The global pay-TV market continues to grow in the first two quarters of 2013, adding 23 million new subscribers for a 3 per cent increase, according to ABI Research. In particular, telco TV and satellite TV growth was robust while cable and terrestrial pay-TV services experienced virtually flat growth.

“ABI Research expects that worldwide pay-TV subscribers will reach 895 million by the end of 2013, to generate service revenue of $245 billion,” comments Jake Saunders, VP and practice director of core forecasting.

Pay-TV market growth is expected in all regions of the world in 2013, although Asia-Pacific will continue to be the main contributor of subscriber net additions. The North America pay-TV market is growing at its slowest rate because it’s already saturated with more than 80 per cent penetration; furthermore, it is weathering headwinds from alternative web-based TV services. The growth in the North America pay-TV market will mainly be driven by the region’s increasing telco TV market.

“North American telco TV operators, such as AT&T and Verizon, have demonstrated strong subscriber additions in the first half of 2013. ABI Research forecasts that more than 1.5 million telco TV subscribers will be added in North America in 2013 to reach 11.9 million subscribers. The region will generate service revenue of USD 10 billion from telco TV service in 2013,” notes Khin Sandi Lynn, industry analyst.

Globally, telco TV service revenue market share will increase more than one percentage point to capture 14 per cent market share. However, cable TV service revenue market share will decrease to 47 per cent in 2013 from 48 per cent in 2013.

 

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