The U.S. pay-TV industry lost subscribers for the first time on a year-over-year basis in 2013. The top 8 cable providers, top 2 telcos and satellite operators dropped, overall, 0.4% of their video subscribers in 2013, down 340,000.
Penetration of households continues a long term decline, falling below 2009 levels.
The global set-top box (STB) market-including IP/cable/satellite/DTT STBs and OTT media servers-totaled $18 billion in 2013 — that’s a decline of 10% from the previous year. Pace closed out 2013 as the worldwide STB revenue and unit share leader, though Arris claimed the revenue share lead in 4Q13.
“The overall set-top box (STB) market declined in 2013, but cable and satellite video gateways had a very strong year, with shipments growing 333% and 98%, respectively,” says Jeff Heynen, principal analyst at Infonetics Research.
via Infonetics Research
“The pent-up demand for new Converged Cable Access Platform equipment is evident in the early volume deployments of CCAP gear, and we expect the upward trend in combined CMTS and CCAP channel shipments to continue as operators prepare their networks for DOCSIS 3.1,” notes Jeff Heynen.
Meanwhile, 4Q13 marks the highest number of combined CMTS and CCAP upstream and downstream DOCSIS channel shipments on record, owing largely to a 192% sequential jump in CCAP channel shipments.
While this may not be a good year for pay-TV in the saturated markets within North America, there are still growth opportunities in other markets. Overall, this will be the year for global pay-TV subscriptions to pass the 1 billion mark — no later than in September, according to Pyramid Research.
The global pay-TV market will grow by 6% in terms of subscriptions during 2014, reaching a household penetration of 52 percent, and generate $237 billion in video entertainment service revenue.
via Pyramid Research
A recent study found 47% of pay-TV households in the U.S. market have at least one Digital Video Recorder (DVR) – that’s an increase from 40% in 2010, and 23% in 2007. In addition, 50% of households with a DVR now have service on more than one TV set.
However, the $7.99/month video streaming service offerings — such as Netflix or Hulu — appears to have dampened many American consumer’s interest in DVRs, which typically are $10/month or more.
In the boom and bust cycles of the American pay-TV business, being the incumbent cable provider sets you up for the predictable subscriber losses.
We expect IPTV subscriber growth to continue, and satellite to remain flat. And while the nations largest cable operator is showing signs of renewed subscriber growth, it will not be enough to propel them out of negative territory.
via Screen Digest
Incumbent U.S. pay-TV service providers would rather forget 2013 — since it will be remembered as one more year where the major MSO cable operators collectively reported hundreds of thousands more video subscriber disconnects and service downgrades each and every quarter.
“Telco IPTV operators 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.
While the economy continues its uneven recovery, there are both positive and negative signs for the U.S. pay-TV business. Cord-cutting continues to be an issue, and had accelerated in Q3 2013, causing declines in cable to accelerate during the quarter.
As the numbers of cord-nevers that pass up on a pay-TV subscription grow, market penetration is expected to continue its decline and nearing 80 percent through 2017.
via Screen Digest
Telcos and cable operators are investing heavily in their networks to upgrade their subscribers to bundles — known as triple-play or double-play service packages.
Total subscription revenues (pay-TV including on-demand, broadband and fixed-line telephony) will increase by 65% — from $124 billion in 2012 to $205 billion in 2018.
As the market for broadband services becomes more saturated, U.S. telecom carriers and cable TV service providers are using online and mobile channels to promote new offerings — but they’re using advertising that’s sure to be ignored by prospective customers.
eMarketer expects such efforts will push U.S. telecom industry digital ad spending to $4.82 billion in 2013 — and if they stay on this path, it will reach $6.69 billion by 2017.