OTT and ‘skinny’ bundles stave off cord-cutting
May 22, 2015
The global pay-TV services market, including cable TV, satellite TV, telco TV and OTT video, totalled $237 billion in 2014, up 7 per cent from the previous year, according to the 2015 IHS Infonetics Pay-TV Services and Subscribers report.“In a growing number of pay-TV markets, service providers are expanding market presence by offering their own OTT video services, primarily as apps on tablets and third-party OTT media servers. Dish Networks, the second-largest satellite provider in the US, is offering an OTT video service called Sling TV that’s aimed squarely at cord-cutters and cord-nevers,” said Jeff Heynen, research director for broadband access and pay-TV at IHS. “The net result of these offerings will be slower revenue growth globally as OTT services carry a lower ARPU.”
“Pay-TV providers are also actively marketing ‘skinny’ bundles of 10 to 30 channels in more affordable packages. Verizonhas gone so far as to introduce multiple bundles of channels that subscribers can add on top of their base channels to create a custom channel lineup,” Heynen said.
Report highlights include:
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