Robust Telco TV Service Revenue Growth Seen in 3Q 2010

Wednesday, November 17th, 2010
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SINGAPORE — According to the latest figures from ABI Research, global pay-TV service revenue totaled $55.5 billion during the third quarter of 2010, approximately a 9% increase from the same period in 2009.

“Telco TV platforms are seeing a significant revenue increase,” says Jason Blackwell, digital home practice director at ABI Research. “In the third quarter of 2010, telco TV service revenue worldwide increased 8% over the second quarter. Strong subscriber net additions and an increase in ARPU underpin the increase in telco TV service revenue.”

Currently more than half of global telco TV service revenues come from Western Europe where telco TV penetration is already quite high, and net subscriber additions in the region are expected to slow due to that penetration. The result: telco TV’s market share in terms of subscriber numbers and service revenue is expected to decline in Western Europe in the coming years.

Terrestrial TV service revenue represents less than 2% of global pay-TV revenue. Net terrestrial TV subscriptions in European countries will drive the growth of service revenue. ABI Research expects that terrestrial TV service revenue will grow to $780 million at the end of 2011. At present, Norway, Finland and France are the leading countries in the terrestrial TV market.

In the third quarter of 2010, steady growth in pay-TV ARPU was seen across different platforms. “Most regions showed positive growth in pay-TV service revenue,” says research associate Khin Sandi Lynn. “However, we saw decline in cable TV service revenue in North America. Market saturation and competition from other, newer pay-TV services resulted in customer losses for some cable operators in North America.”

ABI Research expects worldwide pay-TV services to generate almost $230 billion in revenue by the end of 2011.

The analyst firm has recently completed a quarterly update of its “Pay TV ARPU and Revenues Market Data” which provides historical and forecast data for ARPU, service revenue forecasts for satellite, cable and telco TV.

The study is a part of the company’s TV and Video Research Service, which include other Market Data products, Research Reports, Research Briefs, ABI insights and analyst inquiry support.