The global pay-TV subscriber base is expected to have increased by 5% to surpass 924.2 million users in 2014, largely thanks to strong growth in the IPTV market.
According to latest figures from ABI Research, IPTV is expected to show growth of 14% for 2014, followed by satellite TV with 7%. The growth rates of cable and terrestrial TV platforms are expected to have slowed to around 3%.
Looking further ahead, ABI Research forecasts that the global pay-TV market will generate US$324 billion in service revenues by 2019, adds analyst Khin Sandi Lynn.
The Asian-Pacific and Latin American markets are driving growth in the global cable TV market growth. A combination of the two regions is likely to have added over 13 million subscribers in 2014 while the cable TV market in North America is expected to have declined by about 1% in 20 14.
ABI Research noted that major cable TV operators in North America lost over 400,000 TV customers in Q3 2014, although it said cable companies are doing well in broadband.
Video streaming services such as Netflix and TiVo, which cost less than US$10 in monthly fees, are also becoming attractive alternatives for pay-TV customers. ABI Research said 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.
For example, Netflix has agreed deals with some pay-TV operators in Europe and elsewhere to offer its streaming service to broadband customers.
ABI also noted that bundled packages help pay-TV operators try to reduce churn; indeed, IPTV providers in the UK are also now adding mobile services to existing triple-play packages of broadband, TV and fixed voice.
The research company also noted that HD channels, advanced PVR services and premium content such as sport content contribute 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,” said Khin Sandi Lynn.
