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ABI: Pay-TV Market Gains 23 Million Subs in First-Half of 2013

4 Sep, 2013 By: Erik Gruenwedel

Asia-Pacific largest source of subscriber growth

The worldwide pay-TV market added 23 million new subscribers for a 3% year-over-year increase. Telco and satellite TV growth was robust, while cable and terrestrial Pay TV services experienced flat growth, according to ABI Research.

“[The research group] expects the global pay-TV subscribers base to reach 895 million by the end of 2013 — generating revenue of $245 billion,” said Jake Saunders, VP and practice director of core forecasting.

Pay-TV market growth is expected in all regions of the world in 2013, although Asia-Pacific will continue to be the main contributor of subscriber net additions, according to ABI. The North America pay-TV market is growing at its slowest rate because it’s already saturated with more than 80% penetration; furthermore, it is weathering headwinds from alternative web-based TV services. The growth in the North America pay-TV market will mainly be driven by the region’s increasing telco TV market.

Globally, telco TV service revenue market share will increase more than 1% to capture 14% market share. However, cable TV service revenue market share will decrease to 47% in 2013 from 48% in 2013.

“North American telco TV operators, such as AT&T and Verizon, have demonstrated strong subscriber additions in the first half of 2013,” said Khin Sandi Lynn, industry analyst.

ABI forecasts that more than 1.5 million telco TV subscribers will be added in North America in 2013 to reach 11.9 million subscribers. The region will generate service revenue of $10 billion from telco TV service in 2013.


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