Between 2013 and 2014, the number of digital video viewers in the UK will rise 5.7%, equating to 2.0 million additional people watching video over the internet at least monthly.
This year, nearly three-quarters of the internet population will do so, a share that will barely budge by 2018.
Pay-TV Service Delivery Platforms (SDP) create and manage services, subscribers, the overall experience, individual consumer-facing features, service entitlements and enable service providers to establish both physical and virtual TV service territories.
MRG expects that total worldwide SDP revenue will reach $1.3 billion in 2017, from a little more than $900 million last year.
Residential consumers in North America rate Internet service the highest in importance, followed by wireless, subscription video, and then voice – with 97.3 percent of respondents subscribing to an Internet service, and 78.9 percent subscribing to landline telephone service.
The survey found that Internet usage now exceeds conventional television viewing for more consumers with a data connection.
What’s driving growth in pay-TV are the emerging markets. Specifically, India and Latin America are adding satellite and cable subscribers, while China is seeing an increase in IPTV subscribers. Meanwhile, Comcast lost 355,000 American subscribers over four quarters.
The decline in cable subscribers across all operators is attributable more to churn than cord cutting as consumers defect to IPTV and satellite.
Despite continued growth of online video viewing on connected consumer electronics (CE) devices and expanding platform options, annual increases in mobile online viewing (via tablets and smartphones) are higher than any other category.
Worldwide mobile views already constitute over 20 percent of the total in 2013 – more than doubling during the next five years, according to ABI Research.
In a growing number of markets, pay-TV providers find themselves at a crossroads. Their traditional business models are under attack as telco IPTV providers, over-the-top (OTT) providers, and consumer electronics companies — i.e. Netflix, LOVEFiLM, Amazon, Hulu, Apple and Samsung — continue to divert revenue away from them.
For most pay-TV providers, the media tablet has become the de facto second screen: 47% of survey respondent operators support tablets as part of their multi-screen service now, growing to 89% by 2015.
More than 60% of broadband households have at least one television set connected to the Internet — such that it can receive entertainment services like Netflix and Pandora.
“Though broadband diffusion may be slowing as the market matures, the expansion of broadband-connected TVs continues at rapid clip, up 19% in the last year,” noted Michael Greeson.
A recent poll revealed that 74% of adult online Canadians subscribe to traditional pay-TV. Among those subscribers, 47% compliment their service by subscribing to one or more over-the-top (OTT) video content services.
Also,while 28% subscribe to just one OTT service, nearly 20% subscribe to two or more OTT video services.
In terms of the emerging types of DVR services, MRG is forecasting households with network DVR services to grow slightly faster than cloud DVR service households during the next five years. Global network DVR households will reach 19 million, with most activity occurring in North America, while cloud-based DVR households will reach 14 million.
MRG defines a network DVR service as “subscriber controlled,” meaning the DVR service end-user has the ability to select and record their own private copies of programming.
In 2014, movie producers worldwide will earn revenues of $29.6 billion from home video (DVD / Blu-ray) and all forms of TV licensing. They could earn the same amount by licensing all of their movies exclusively to online video entertainment companies — if 45% of the world’s broadband subscribers, or 348 million users, each pay $15 a month.
While 348 million users might seem like a huge number, it is less than half of the worldwide installed base of Pay-TV subscribers (cable TV, satellite TV and IPTV).