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Tag: ABI Research

  • Global pay TV subscriber base to surpass 1.1 billion in 2020

    Global pay TV subscriber base to surpass 1.1 billion in 2020

    MUMBAI: The worldwide pay TV market grew at a steady rate of four per cent in 2014 to reach 923.5 million subscribers according to a recent study by ABI Research.

     

    “Despite the growth in subscriber base, weak currency exchange rates resulted in a slower increase of pay TV market service revenue. Worldwide the pay TV market generated $257 billion in 2014 and is expected to surpass 1.1 billion subscribers in 2020 with a CAGR 2.7 per cent,” said Core Forecasting VP and practice director Jake Saunders.

     

    Cable and terrestrial TV markets had weaker growth rates in 2014 compared to satellite and IPTV platforms. However, high definition (HD) penetration is increasing across all pay TV platforms because of the increasing number of HD channels added by operators. In 2014, 44 per cent of the worldwide pay TV subscriber base were HD subscribers, with the highest HD penetration in Western Europe and North America. HD penetration is expected to reach 60 per cent of the total pay TV market in 2020.

     

    Pay TV operators are now moving towards 4K or Ultra HD service. In November, US satellite operator DirecTV launched its first 4K programming without any additional monthly charges to subscribers with its HD DVR, Genie and DirecTV 4K Ready television set, which is any of Samsung’s Smart 4K TV models. Online video streaming services such as Netflix and Amazon also started to offer 4K content in late 2014. When content availability and 4K TV set adoption increase, 4K services are likely to become a differentiator for pay TV service providers.

     

    In 4Q 2014, US cable operators lost roughly 100,000 subscribers while Comcast gained 7,000 subscribers. The country’s largest satellite TV provider, DirecTV gained 149,000 subscribers in 4Q 2014, which is the highest net addition since 2012.

     

    “As competition in the pay TV market increases, quality of content, innovations, and service pricing are among the important factors for pay TV operators to maintain customer base. ABI Research forecasts that the global pay TV market will generate $313 billion service revenues by 2020,” added industry analyst Khin Sandi Lynn.

  • IPTV to drive growth of global pay-TV market

    IPTV to drive growth of global pay-TV market

    MUMBAI: The worldwide pay-TV market is expected to have grown five per cent in 2014, surpassing 924.4 million subscribers. “IPTV is expected to grow a market leading 14 per cent in 2014, followed by satellite TV platform at seven per cent. The growth rates of cable and terrestrial TV platforms are expected to slow to around three per cent,” said ABI Research VP and practice director of core forecasting Jake Saunders.

     

    Global cable TV market growth is driven by the Asian-Pacific and Latin American markets. A combination of the two regions is likely to add over 13 million subscribers in 2014 while the cable TV market in North America is expected to decline approximately one per cent in 2014. In 3Q 2014, major cable TV operators in North America lost over 400,000 TV customers, although cable companies are doing well in broadband.

     

    Video streaming services such as Netflix and TiVo, which cost less than $10 in monthly fees are attractive alternatives for pay-TV customers. 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. Online video service Netflix has agreed to deals with some of the pay-TV operators in Europe to offer its streaming service to European broadband customers. Canadian companies such as Cogeco, Rogers Communications, and Shaw Communications also recently announced deals to offer Netflix’s video streaming service to their own broadband customers.

     

    Bundled packages help pay-TV operators try to reduce churn. In addition, 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 per cent of total pay-TV subscribers will be HD subscribers by 2019. ABI Research forecasts the global pay-TV market will generate $324 billion in service revenues by 2019,” added industry analyst Khin Sandi Lynn.

  • Pay TV growth spurred by BRIC nations, says ABI Research

    Pay TV growth spurred by BRIC nations, says ABI Research

    MUMBAI: India is just a year into the process of digitisation, and, in another year, it is quite likely all of the nation’s 100-odd million cable TV homes will be having a set top box (STB) perched on top of their TV sets. The rapid spread of the STB and pay TV is ensuring that India increasingly pops up in research reports on pay TV as a major contributor of growth. Other countries which are also helping spike pay TV growth are Brazil, Russia and China.

     

    Take a dekko at the latest report released by international research firm ABI Research. It states that the pay TV subscriber base across the world surpassed 886.5 million at the end of Q3 2013, a six per cent YoY increase and generated $ 62.6 billion service revenue. Maintaining its Q2 2013 status, BRIC (Brazil Russia India China) nations were a major contributor and will continue to be in the future years, ABI has stated.

     

    The research predicts that by 2018, global pay TV subscribers will shoot to more than 1 billion out of which BRIC countries will be responsible for 68 per cent of total net additional subscribers.

     

    “Emerging markets are key drivers of global growth in pay-TV subscribers as developed markets are experiencing flat growth rates,” said ABI Research VP and practice director Jake Saunders.

     

    The US Pay TV market grew at less than one per cent as compared to Q3 2012, due to increasing cord cutting by cable TV subscribers who are switching over to cheaper OTT services such as Netflix and Hulu. According to the report, approximately 1.7 million subscribers were lost from cable TV last year in North America. However, revenues increased due to high ARPUs (Average Revenue per User) driven by increasing HD and advanced DVR (Digital Video Recorder) subscribers.

     

    European countries also showed marginal growth with less than two per cent increase than Q3 last year. Service providers in Spain lost over seven per cent of their pay TV subscribers and Italy over two per cent as compared to a year ago due to the weak economic environment. However, markets such as the UK, France and Germany along with other Western Europe countries saw IPTV subscribers increase by 1.9 million from Q3 2012 to Q3 2013.

     

    According to a 2012 report by the Singapore-based Media Partners Asia (MPA) overall pay TV subscribers in India were expected to cross 170 million in five years. Much like the US, India is also set to see revenue increase due to HD TV sets. India has one of the lowest ARPUs in the world at approximately Rs 140 ($ 2.2) but the industry is optimistic that it will grow to Rs 550 ($ 8.73) once digitisation is complete.

  • Over 60 per cent growth in worldwide OTT video revenue in 2012, ABI Research

    Over 60 per cent growth in worldwide OTT video revenue in 2012, ABI Research

    MUMBAI: Companies like Netflix, Hulu, Apple, and Amazon have helped drive the over-the-top (OTT) video market past $8 billion in 2012. The three largest markets-North America, Europe, and Asia-Pacific-experienced year-on-year (YoY) growth in excess of 50 per cent in 2012. The continued spread of connected CE and increasingly mobile devices, like tablets, are expected to push the market past $20 billion by 2015, according to ABI Research.

    ABI Research senior analyst Michael Inouye said, “The shift to digital and OTT distribution is accelerating, particularly as content providers increasingly warm up to these channels. While Pay-TV services are still afforded many advantages we are approaching the proverbial fork in the road when content owners will decide if they continue down the same path or forge ahead, shaking up the primary means of media distribution as we‘ve known it.”

    The dynamics around revenue generation continue to change and currently vary by region (e.g. subscriptions more significant in North America than Europe or Asia-Pacific). In time, however, we expect a greater diffusion of revenue across the various business models. For instance, in 2012 58 per cent of OTT video revenue came from subscription service, but we anticipate this share to fall to less than 32 58 per cent by 2018. In large part this is driven by a continual shift in consumer demand towards newer forms of digital content distribution.

    ABI Research practice director, Sam Rosen said, “While we still see great value and strength in the Pay-TV sector we are also starting to see the pieces that will accelerate change fall into place .”Whether it‘s Netflix expanding to International markets or ABC and CBS enhancing catch-up services the building blocks that will restructure the how, when, and where consumers view content are starting to give shape to a new media future. This future, however, isn‘t devoid of traditional media nor is it a matter of new channels necessarily winning, but rather a redistribution of wealth within the value chain.”

  • IPTV’s share in pay TV to rise to 18% by 2018 from 11.5% in 2012

    IPTV’s share in pay TV to rise to 18% by 2018 from 11.5% in 2012

    MUMBAI: The worldwide pay-TV market grew at a steady pace in 2012 generating $238 billion by end-of-year, up from $223 billion in 2011, according to ABI Research‘s ‘Pay-TV ARPU and Revenues‘ Market Data.

    The global pay-TV market is expected to generate $304 billion in 2018 with a CAGR of four per cent.

    Service revenue contributions from cable TV are proving mixed. The Asia-Pacific region saw service revenue growth due to underlying increase in subscriptions. However, cable TV operators in North America are experiencing a decline in service revenue as result of a contracting subscriber base, despite cable TV innovations such as DVR and HDTV.

    Globally, IPTV is gaining market share year-over-year while the rest of the pay-TV platforms are slowly contracting. IPTV service revenue market share increased from 10 per cent in 2011 to 11.5 per cent in 2012. Cable TV market share dropped to 47 per cent in 2012 from 48.5 per cent in 2011 while satellite TV market share dropped around one per cent.

    ABI Research VP, practice director of core forecasting Jake Saunders said, “Availability of super-fast broadband networks and bundle offers from telcos over high-speed networks are driving the growth of IPTV adoption. IPTV market share is expected to increase to 18 per cent in 2018, to generate $53 billion in revenue”.

    ABI Research analyst Khin Sandi Lynn said, “Based on ABI Research‘s global Pay-TV market share analysis, satellite giant DirecTV ranks top in terms of Pay-TV service revenue across all platforms. In the global IPTV sector, Verizon is the top ranked IPTV operator with the highest service revenue”.

  • China to have over 32 million mobile video users in 2008

    China to have over 32 million mobile video users in 2008

    MUMBAI: The mobile video market in China will take off in 2008, driven by interest in the Beijing Olympics.

    A new study from ABI Research published out of Singapore forecasts total mobile video users at more than 32 million in 2008. About 27 per cent of these consumers will use broadcasting technology, and 73 per cent will use unicast streaming technology, while a number of viewers are likely to use both.

    In 2006, SARFT, the Chinese State Administration of Radio, Film, and Television, announced two handset-related standards. DAB is likely to be the first phase of mobile multimedia broadcasting standards development in China. DAB paves the way for upgrading to China’s proposed mobile multimedia broadcasting standard, T-DMB, a terrestrial implementation of SK Telecom’s mobile video format.

    Because both standards are voluntary, there are questions surrounding their effect in the market. “It is likely that local media groups and TV stations will deploy DAB initially, and implement T-DMB at a later date,” 3g.co.uk quotes ABI research director Jake Saunders as saying. “The Chinese government will give preference to a standard that will be used in the 2008 Olympics, and DAB has been listed as one of the broadcast services that will be available at the Beijing Games.”

    “Although lack of content is still deemed to be a bottleneck for mobile video in mainland China, the problem will be solved in the next two years,” adds Saunders. “The current content shortage is caused by the limited number of handset TV SP licenses. When more companies obtain licenses, competition will become the lubricant to drive up the market.”

    Meanwhile in Hong Kong, mobile operators are active in mobile video streaming. Their international operations backgrounds allow them to provide diversified content to users.

    PCCW’s experience in operating its IPTV business will boost its performance in the 3G market. ABI Research forecasts approximately 715,000 mobile video users in Hong Kong in 2008, of which 99 per cent will be streaming users. In Taiwan, ABI Research forecasts that there will be over 1.5 million mobile video users in 2008, with 97 per cent receiving content via streaming.

    “Mobile Video in China” analyzes the mobile video market in mainland China, Hong Kong, and Taiwan. It lists the streaming mobile services offered by mobile operators in the three areas, discusses the regulatory environment in mainland China, and charts the directions that will be taken by mobile video development based on different technologies.