Worldwide video service revenue, including cable and satellite pay-TV and telco-based IPTV, grew again in the first half of 2013, to reach $110 billion says the latest report from Infonetics Research.
This would represent a 2% uptick over the second half of 2012 with most of the growth was driven by IPTV services.
Telco IPTV and satellite revenue both continue to rise, thanks to new subscribers and increased ARPU in the critical regions of North America and Western Europe. Overall, a satellite competitor dominates: DirecTV remains the pay-TV revenue market share leader in the first half.
"Telco IPTV operators AT&T, China Telecom, and Deutsche Telekom continue to enjoy strong growth in new subscribers and ARPU, showing that competitive providers with differentiated services can successfully steal share away from incumbent cable operators," notes Jeff Heynen, principal analyst for broadband access and pay-TV at Infonetics. "Whether it's an improved user interface, multi-screen video, or even DVR services, there are marked differences that have allowed telcos to grow their subscriber bases at a time when others aren't."
By 2017, Infonetics expects the global pay-TV market to hit $270 billion, a 2012-2017 compound annual growth rate (CAGR) of nearly 5%.
Meanwhile, cable revenue market share fell another per cent in the first half of last year, primarily due to a slowdown in subscriber growth in the lucrative North American market, where video subscribers are declining at a pace of 1.5% to 2.5% annually.