At Telco TV this week, Parks Associates will share new research in video services, which shows telcos will lead the next stage in pay-TV services as the number of IPTV subscribers in the US will exceed 18 million in 2017.
The research shows that telcos are leveraging their fibre-based broadband offerings to attract new customers:
– Satellite’s share of the pay-TV market will drop to 30 per cent by 2017. Cable’s share will fall to 52 per cent, and IPTV’s will rise to 18 per cent.
– Cable subscription figures will decline from 60.7 million in 2011 to 56.1 million in 2017.
– The number of U.S. IPTV subscribers will rise from 8.8 million in 2011 to 18.6 million in 2017.
“The era of huge subscriber gains in the U.S. pay-TV market is over,” said Jim O’Neill, Research Analyst, Parks Associates. “Cable TV providers are losing subscribers to IPTV services from AT&T, Verizon, and CenturyLink. Satellite providers also will experience subscriber loss as telcos continue to expand fibre footprints, leverage pricing on triple- and quad-play bundles, and offer advanced TV Everywhere products. Going forward, subscriber retention will become the focus for cable and satellite providers.”
Parks Associates notes US subscribership to satellite and cable television services has plateaued. However, large cable operators such as Comcast and Time Warner Cable are already adjusting their messaging and packages to emphasise their high-speed services. Google has also entered this market with deployment of Google Fiber in Kansas City.
“Experiments in high-speed broadband will spawn the next wave of advanced Internet services, including new streaming and cloud-based video services,” added Stuart Sikes, President, Parks Associates.