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.
The two leading cable television companies in the United States lost over a million video customers between them over the twelve months to the end of September 2013. That is over 3,000 net losses a day.
Cable companies in the United States have collectively lost over ten million video customers since peak levels in 2001 and the rate of loss has increased since around 2008.
After years of subscriber losses, Comcast announced the first widespread test of a cable network ‘lite’ bundle — the combination high-speed data (HSD) and broadcast basic video and a premium channel.
The trial is slated to run a minimum of one year, the operator plans to have stepped increases in the starter $49.99 per month price at 6 months ($60-$70) and again at one year ($70+).
via Screen Digest
Over 70% of the broadband service providers participating in an Infonetics survey will offer home automation services by the end of 2013. Broadband providers are increasingly competing with established home security companies: The bulk of those surveyed plan to offer home security services by 2015.
“One of the more interesting trends we’re seeing in the home automation market is the concept of a provider offering services to end customers over another operator’s broadband connection,” notes Jeff Heynen at Infonetics Research.
That Atlantic’s fantastic business blogger Derek Thompson laid out the best argument I’ve seen last February for why today’s great shows are a product of the economics of pay TV.
Cable networks benefit from the reliable, steady revenue stream that bundling affords them, and in turn, use those resources to try to make the better, more interesting TV shows that will make them a “must have” network.
The top nine cable MSOs shed about 555,000 video subscribers in the second quarter. Dish Network and DirecTV, meanwhile, lost 162,000 subs.
The top domestic telcos – Verizon Communications and AT&T — were the bright spot, as they added 373,000 video subs in the second quarter, topping the 275,000 they added in the second quarter of 2012.
Global Pay-TV set top box (STB) shipments continue to grow, with demand expected to peak at 180 million units in 2016, according to new research from Futuresource Consulting.
“Multimedia home gateways are increasingly a new weapon of choice for operators to stem subscriber churn, offering new services and more efficient delivery of video to secondary screens in the home and on the move,” says Carl Hibbert.
Based on forecasts for 97 countries, on-demand TV revenues from movies and TV programs will reach $6.0 billion in 2018 — that’s up by 44% from $4.2 billion in 2012.
On-demand TV generated just 2.3% of the $184 billion total pay TV revenues in 2012. However, the on-demand proportion will grow to 2.9% of the $203 billion total in 2018.
Worldwide digital cable set-top box (STB) unit shipments grew by 10% in 2012 and are expected to continue to increase modestly in 2013 with revenues of nearly $20 million. Satellite STBs continue to show strength as new providers launch in regions like Eastern Europe, Latin America and the Middle East/Africa. Those unit shipments reached nearly 109 million in 2012, up from about 100 million in 2011.
Demand for IP STBs continued solidly in 2012, MRG expects unit shipments to flatten out and even marginally decrease as the IPTV market matures in 2013 and 2014.