IPTV to Secure an 11% Share of Pay-TV Market by 2015

Tuesday, August 17th, 2010
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SINGAPORE — Worldwide pay-TV subscribers totaled 688 million at the end of the second quarter of 2010. “Subscriber growth is fastest in IPTV platforms, while cable and satellite platforms have the most stable growth rate,” says Jason Blackwell, practice director, digital home at ABI Research. “According to the latest market data, overall pay-TV subscriptions are expected to reach 854.5 million in 2015, with a 5.7% CAGR from 2010 to 2015.”

Cable platforms maintain the largest market share, representing approximately 70% of the overall pay-TV market. According to research associate Khin Sandi Lynn, “The cable-TV market is declining in some countries, especially in Western Europe and North America. One reason is market saturation in these countries. Furthermore, there is aggressive competition from IPTV operators. Cable operators are coming under pressure to maintain subscriber and ARPU growth. Some operators have cut subscription prices in order to compete with IPTV operators.”

The number of IPTV subscribers worldwide continued to grow in 2Q 2010. Western Europe and Asia-Pacific are home to the majority of IPTV subscribers, but the IPTV growth rate in some European countries is expected to slow as the market starts to mature. However, countries in Asia-Pacific, such as China, are expected to grow their IPTV subscriber bases. ABI Research forecasts that IPTV’s share of the overall pay-TV market will increase from 6% in 2010 to 11% in 2015.

Alternative pay-TV platforms also are becoming available to end-users around the world. Pay-DTT (Digital Terrestrial Television) is starting to make its presence felt. Pay-DTT services have been successful in a number of European countries. For example, in Spain, Gol TV achieved one million subscribers within nine months of being launched. The low cost of deploying a pay-DTT service is the main attraction for pay-TV operators. Western European pay-DTT subscriptions are expected to reach 14.4 million by the end of 2015.

ABI Research’s Market Data product, “Pay-TV Subscriptions: Cable, IPTV, Satellite, Digital Terrestrial“, which provides global pay-TV subscription information, has recently received its latest quarterly update. Detailed market trends and market forecast information for key regions and countries around the world are provided where available. The study is a part of the company’s Digital Media Research Service.