Why the U.S. Pay-TV Subscriber Decline is Unstoppable
U.S. multi-channel defections ballooned in the third quarter, amplified by tighter promotions at a time when consumers need little additional motivation to seek OTT alternatives, according to the latest market study by Kagan, a TMT research group within S&P Global Market Intelligence.
Video Entertainment Industry Disruption is Unstoppable
In markets such as North America and Europe, traditional pay-TV operators have jumped into the OTT market to improve subscriber churn by providing less costly video service. Can they compete with the innovative OTT providers? Is this already a lost cause?
American Pay-TV and Internet Market Recap for 2015
It’s interesting to look back over the last few years of ups and downs within the American video entertainment and associated broadband internet access markets. The ongoing market transitions have created a volatile environment, where service providers react to the constantly shifting customer demand.
Source: Digital Lifescapes
How the American Pay-TV Market Transformation is Still Evolving
According to the latest market study by LRG, the thirteen largest pay-TV service providers in the U.S. market — representing 95 percent of the total market — lost about 190,000 net video subscribers during the third quarter 2015 (3Q 2015), that’s compared to a loss of about 155,000 subscribers in 3Q 2014.
Source: Digital Lifescapes
Cable TV Infrastructure Market Declines in North America
Cable broadband equipment spending declines in 1Q15 and continued into the second quarter, with global revenue dipping 2% quarter-over-quarter, according to IHS. In North American, DOCSIS channel shipments were down 25 percent sequentially in 2Q15 after increasing 13 percent in 1Q15.
Predictable Ongoing Status-Quo for U.S. Broadband Internet
If you look back over the past decade, while the Global Networked Economy has evolved as the leading nations in the Asia-Pacific region continue to expand their infrastructure capabilities, the market for broadband Internet access in America has been remarkably stable.
More Pricing Competition in the Pay-TV Set-Top Box Market
The global set-top box (STB) market — including IP/cable/satellite/DTT STBs, OTT media servers, and HDMI dongles — totaled $4.2 billion in 1Q15, slipping 3 percent from 4Q14. IHS expects the number of HDMI dongles sold worldwide to top 27 million by 2019. Meanwhile, cable TV STB sales fell 2 percent worldwide in 1Q15, to $1.5 billion.
Growing Burden of Multi-Screen Pay-TV Tech Support Costs
Pay-TV operators in Europe and the U.S. spend $10 billion annually to provide phone support and in-home repair services. The lion’s share of these multi-screen pay-TV support costs are spent fixing problems operators didn’t even create.
Global Pay-TV Subscribers Reached 800 Million in 2014
The global pay-TV services market — including cable TV, satellite TV, telco TV and over-the-top (OTT) video — totaled $237 billion in 2014, that’s up by 7 percent from the previous year, according to Infonetics Research. However, cable pay-TV revenue growth slowed to 1.8 percent in 2014, largely due to subscriber declines in North America.
The Global Pay-TV Market will Reach $313 Billion in 2020
Traditional forms of video entertainment are already saturated in most of the developed nations around the globe. Meanwhile, some of the more promising emerging markets are growing at a more gradual rate than was anticipated, due to current economic pressures.
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