09.16.2013 05:59 PM
Pay TV market grows worldwide, slows in North America

While the global pay TV market continued to grow in the first two quarters of 2013, adding 23 million new subscribers, a 3 percent increase; the pay TV market in North America grew at its slowest pace due to market saturation, according to new data from ABI Research.

The data, presented in ABI Research’s quarterly “Pay TV ARPU and Revenues,” also reveals telco TV and satellite TV growth was robust while cable and terrestrial pay TV services experienced virtually flat growth.

“ABI Research expects that worldwide pay TV subscribers will reach 895 million by the end of 2013, to generate service 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.

Growth in the North America pay TV market was slow due to market penetration of more than 80 percent. Another factor slowing growth is headwinds from alternative Web-based TV services. Growth in the North America pay TV market will mainly be driven by the region’s increasing telco TV market.

“ABI Research 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,” says ABI industry analyst Khin Sandi Lynn.

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

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