North American pay-TV penetration set for slide over next five years | Pay-TV | News | Rapid TV News
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The US and Canadian pay-TV markets are set for serious headwinds as the industry is hit by subscribers dropping services and a significant rise in on-pay homes, says Digital TV Research.

n. am pay tv 27 March 2017In its North America Pay-TV Forecasts report, the analyst forecasts that the number of pay-TV subs in North America will fall by ten million from 112 million in the peak year of 2012 to 102 million in 2022, a 9% decline. Though it says that this is evidence of a massive cord-cutting problem in itself, there will also be a steep rise in the number of non-pay homes during this period. These are expected to hit 41.56 million by 2022, nearly double the amount over the same research period. The total number of TV households will increase by 11 million meaning that pay-TV penetration will drop from the peak of 87.4% in 2013 to 75.2% by 2022.

The research company adds that the number of pay-TV subscribers declined by two million in both 2015 and in 2016, and that the 2022 total will be five million lower than the end-2016 total. However, it noted that the rate of decline is actually slowing.

“Where are the lost subscribers in the decade to 2022 going?” asked Simon Murray, principal analyst at Digital TV Research. “Some analogue cable subscribers will give up paying for TV services rather than convert to an often more expensive digital platform. Cord-cutting is also a factor. It has been somewhat exacerbated by the traditional pay-TV operators starting their own OTT platforms: satellite TV platform Dish provides Sling TV and DirecTV Now has recently started. Other distractions include Hulu, HBO Now and, of course, Netflix and Amazon Prime Video.”

The report also shows that pay-TV revenues from subscriptions and PPV in North America peaked in 2015 at $108.58 billion. Revenues will fall by 12.7% - or by $13.76 billion - to $94.82 billion in 2022. Cable revenues will decline by $12.13 billion - $2.19 billion less from analogue cable and $9.94 billion lower for digital cable. Satellite TV will grow by $1.93 billion, but IPTV will fall by $3.55 billion – or by a massive 32.5%.
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