Although OTT video services are providing another competitive challenge to established cable video and satellite or IPTV offerings, market research firm Infonetics Research doesn’t expect OTT to have a significant impact on pay-TV subscribers.
The firm’s Pay TV Services and Subscribers report, which forecasts and analyses the telco IPTV, cable video, and satellite video services markets, notes that in 2008, cable video made up 59 per cent of the global pay TV market, satellite video brought in 38 per cent and IPTV was just a drop in the bucket.
“Now cable operators are being challenged not only by attractive pricing and services from IPTV and satellite operators, but by all OTT video services, like Netflix and Amazon On-Demand, and by connected-TV devices, which are prompting consumers to cut the cord,“ notes Jeff Heynen, directing analyst for broadband access and video at Infonetics Research.
“Net new cable video subscribers continue to decline in North America and EMEA, and the small increases in Asia and Central and Latin America aren’t offsetting those declines. While we don’t expect OTT to have a significant impact on pay TV subscribers because operators are responding to OTT with their own enhanced delivery offerings, we do expect cable video’s share of pay TV revenue to decline as satellite video increases — nearly catching up to cable by 2015 – while IPTV services grow to 15 per cent of the market,” he advises.
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