Pay-TV services market hits $240 billion

Monday, May 16th, 2011 
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Subscribers still paying despite allure of free over-the-top

CAMPBELL, California — Market research firm Infonetics Research today released excerpts from its Cable, Satellite, and IPTV Video Services and Subscribers report, which tracks the telco Internet protocol television (IPTV), cable video, and satellite video markets.

ANALYST NOTE

“We’re seeing continued growth in the pay-TV market, driven by providers’ ability to offer voice/video/data service bundles, a broad range of linear and on-demand content, and advanced services, such as multi-room DVR and multi-screen video delivery. Although cable MSOs continued to be challenged by competition from IPTV and satellite operators, the overall market remains robust, despite the attractiveness of over-the-top (OTT) services,” notes Teresa Mastrangelo, directing analyst for video at Infonetics Research.

VIDEO SERVICES MARKET HIGHLIGHTS

  • Worldwide revenue derived by providers of IPTV, cable video, and satellite video services grew to $240 billion in 2010, up 11% over 2009
  • Video services experiencing the strongest revenue growth are IPTV services (up 45% in 2010) and satellite video services (up 13%)
  • Cable video services continue to make up (by far) the largest portion of total video service revenue, although growth in the cable video service segment is slowing
  • DIRECTV, which enjoys the highest video service ARPU in the industry, is the global leader for video service revenue
    • The top 20 revenue leaders account for 53% of total video services revenue
  • With more than 22.8 million video service subscribers worldwide, Comcast maintains its lead in the race for subscribers
  • In 2010, the fastest growing video services markets were in Asia Pacific and Central and Latin America, driven by analog-to-digital conversion activity and strong new subscriber growth in markets such as Brazil, India, Malaysia, and Mexico

REPORT SYNOPSIS

Infonetics’ biannual Cable, Satellite, and IPTV Video Services report provides worldwide and regional market size, vendor market share, forecasts through 2015, and in-depth analysis for video services and subscribers, including telco IPTV (pure IPTV, telco hybrid IPTV/over-the-air, hybrid IPTV/QAM), cable video (basic and digital), and satellite video.

Video service revenue and subscriber market share is tracked for Airtel, América Móvil, AT&T, Bell Canada, BSkyB, CTC, Cablevision, Canal Digital, CanalSat, Charter, Comcast, Cox Communications, Deutsche Telekom, DirecTV, DISHTV, DISH Network, France Telecom, Illiad, Kabel Deutschland, KPN, KT (Korea Telecom), LG, NET Serviços, Oi TV, SaskTel, SK Telecom, Sky, Sky Mexico, SureWest, Tata Sky, Telefónica, Time Warner Cable, UPC Broadband (Liberty Global), Verizon, Virgin Media, and many others.