Pay-TV subs fare well in face of free OTT

Market research firm Infonetics Research has released excerpts from its Cable, Satellite, and IPTV Video Services and Subscribers report, which tracks the telco IPTV, cable video, and satellite video markets.

“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.

Highlights of the report include:

- Worldwide revenue derived by providers of IPTV, cable video, and satellite video services grew to $240 billion in 2010, up 11 per cent over 2009
- Video services experiencing the strongest revenue growth are IPTV services (up 45 per cent in 2010) and satellite video services (up 13 per cent)
- 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 per cent 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 analogue-to-digital conversion activity and strong new subscriber growth in markets such as Brazil, India, Malaysia, and Mexico.