IPTV to drive global pay-TV to over 900MN subs

DetailsEditor | 14 February 2015

The success of telco TV over 2014 has been a key engine for a worldwide pay-TV market that is expected to have grown 5% in 2014, surpassing 924.4 million subscribers according to ABI Research.

Netflix OITNB iPad lifestyleThe new study, part of the company’s Pay-TV Market Research, showed that IPTV is expected to grow a market leading 14% in 2014, followed by satellite TV platform at 7% and with cable and terrestrial TV platforms lagging well behind on 3%.

Looking at the different platforms, ABI calculates that the global cable TV market growth is being driven by the Asian-Pacific and Latin American markets which when combined will likely add over 13 million subscribers in 2014 while the cable TV market in North America is expected to decline approximately 1% in 2014. In the third quarter of 2014, major cable TV operators in North America lost over 400,000 TV customers, although cable companies are doing well in broadband.

In its analysis, ABI noted that online video streaming and VOD services from people such as Netflix and TiVo are attractive alternatives for pay-TV customers. It adds that traditional pay-TV operators are now trying to compete with these services by developing their own video-streaming products or by integrating these services in their existing services, complementing bundled packages to try to reduce churn. In addition, HD channels, advanced PVR services and premium content such as sport content have also contributed to increased ARPU.

“The worldwide HD subscriber base is growing on all pay-TV platforms. Approximately 57% of total pay-TV subscribers will be HD subscribers by 2019. ABI Research forecasts the global pay-TV market will generate US$324 billion in service revenues by 2019,” commented ABI industry analyst Khin Sandi Lynn.