American telcos AT&T and Verizon added nearly a third of a million television subscribers in the third quarter of 2014. Between them they have 11.58 million video customers, up by 1.16 million over twelve months. However, the gains of the two telcos appear to come at the expense of other pay-TV service providers.
“The growing number of high-definition (HD) subscribers as well as major sporting events such as the World Cup 2014 have contributed to improving ARPU,” said Jake Saunders, VP and practice director of core forecasting at ABI Research. As a result, the total pay-TV service provider market is expected to generate over $269 billion by the end of 2014.
While the number of video starts are growing fast to the smartphone, the smaller screen loses out heavily in video finishes. Adobe data shows that video completions are significantly lower for the smaller screen than for the TV or computer. Just 16.6% of videos viewed on a tablet or smartphone are watched to 75% completion. 50% of PC and 35% of game console views reach 75% completion.
YouTube has unmatched depth and diversity of content, combined with a user base spanning nearly every demographic on the planet. It presents marketers with unique opportunities to reach target audiences, according to eMarketer. U.S. video ad revenues for the site are expected to rise 39.2% this year to $1.13 billion.
Traditional pay-TV revenue is forecast to decrease dramatically over the next few years, with average annual growth dropping to 2.8% between 2014 and 2018, compared to 6.1% between 2010 and 2013. Despite which, it will continue to be the main source of TV revenue up to 2018 — bringing in 195.9 billion EUR in 2018.
Globally, pay television set-top box (STB) revenue — including IP, cable, satellite, and DTT STBs and OTT media servers — is up 4 percent in 2Q14 from 1Q14, to $4.8 billion. STB unit shipments grew 7 percent sequentially in 2Q14, but are down 3 percent from the year-ago 2nd quarter (2Q13). Cable television STB revenue increased by 3 percent sequentially in 2Q14, and unit shipments grew 4 percent during this same period.
3G networks marked a sea change in the way consumers could use their mobile devices — opening up a new world of services, allowing for the speedy delivery of myriad forms of content and providing the infrastructure to support the mobile app ecosystem. Now, users on 4G networks have responded to faster network speeds by consuming greater amounts of content — including video.