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OTT to dent pay-TV revenue

Market research firm Infonetics Research has revised its pay-TV revenue forecasts to reflect what it sees as increasing competition from OTT players.

“As a result of increasing competition from over-the-top players and the service providers themselves using broadband video as a lower-priced offering, we believe overall video services ARPU and revenue growth will be constrained and, accordingly, have reduced our 2017 pay-TV revenue forecast by 35 per cent globally, from $401 billion to just under $260 billion,” advises Jeff Heynen, principal analyst for broadband access and pay TV at the firm.

Among the findings from the Pay TV Services and Subscribers report:

  • The global pay-TV market (cable and satellite TV, telco IPTV) totalled $221 billion in 2013, a 5 per cent gain from a year ago
  • Growth resulted from pay-TV providers in mature markets increasing average revenue per user (ARPU) among slow-growing/declining subscriber bases, and from operators in emerging markets continuing to see significant subscriber growth
  • Pay-TV subscribers grew 5 per cent in the second half of 2013 (2H13), to 756 million subscribers, with the strongest growth coming from the telco IPTV segment
  • DirecTV is the global market leader for pay-TV service revenue; The satellite TV provider has one of the highest ARPUs in the industry, which is helping it offset a slowdown in net
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