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IPTV, satellite soon to dominate the global pay-TV business

Good old cable TV will continue to be leading the way in which consumers around the world get their pay-TV service, but its reign at the top may be nearing an end, according to a report by Infonetics Research estimates and study of telco IPTV, video cable and satellite video services.
In other findings in the report, Pay TV Services and the subscriber, is that the entire pay-TV market - of which about half is now controlled by the cable companies - continue to grow worldwide and increased from US$261 billion in 2011 to US$371 billion in 2016. The North American market is most highly valued because of the high ARPU but Latin America and Asia is rapidly gaining ground.

The report focuses onMexico as pay-TV service in America Movil, which saw pay-TV subscribers and revenue growing at triple digital percentage of 2010-2011.

Although the international market begins to percolate, the two global leaders remained DirecTV and Comcast. DirecTV leads the parade of ARPU, thanks to the cable-despised NFL Sunday Ticket package, but Comcast will lead with 22 million subscribers in 2011.

As the market leader remained steady, the market itself is ready for a major global shift, Jeff Heynen, direct analyst for broadband access and video Infonetics and author the report, said in a statement.

"Cable video still makes more than half of the global pay TV market but earnings growth is decelerating due to a slowdown in new subscribers, especially in the lucrative North American market and competition from satellite and IPTV operators intensifies and as OTT offerings from Netflix, Hulu and siphon away a small, but growing number of households ".
Somethings does not change and probably will not. Being big is not always an advantage - but it does not hurt. According to research, the top 20 leaders pay income brought in 50 percent of revenue even while the top 20 leaders of the subscriber is represented only 30 percent of the subscriber.

Pay-TV Market Highlights

  • The global pay-TV market, including cable, satellite, and telco IPTV video services, totaled US$261 billion in 2011 and forecasting by Infonetics to grow to US$371 billion by 2016.
  • North America was again the highest value of the video market because of high ARPU, but Latin America and Asia gaining ground as a result of expanding subscriber bases.
  • Case in point: America Móvil of Mexico pay-TV subscribers and revenue grew at triple-digit percents from 2010 to 2011, KT has grown at double-digit.
  • DirecTV and Comcast will remain the global market leader for pay-TV revenue and subscriber.
  • DirecTV enjoys the highest ARPU due to the high rate of its value added services and premium content such as the NFL Sunday Ticket.
  • Comcast is the global leader pay-TV subscribers, with more than 22 million subscribers in 2011.

In 2011, the top 20 pay-TV revenue leader accounted for 50% of revenues, while the top 20 leaders of subscribers represented 30% of the subscribers.