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Report: Worldwide pay-TV revenue to hit $236B at end of 2012

Wed, 12/21/2011 - 1:34pm
Mike Robuck

The worldwide pay-TV market will generate service revenues of $236 billion by the end of next year, but cable’s share of the revenue pie will be down slightly, according to a study by ABI Research.

Among the reasons cited for cable’s decrease was increased broadband penetration, leading to more opportunities for over-the-top (OTT) services, although in many cases those OTT services are being sent over cable’s data pipes. The increased rollout of IPTV services by competitors was also cited as another reason for cable’s diminished share next year.

"Cable TV services will still dominate the overall pay-TV market, although this segment's market share is expected to slightly decrease from 2011. Cable TV service revenue will account for 48 percent of total pay-TV revenue in 2012," said ABI’s Jason Blackwell, practice director of digital home.

Worldwide cable revenue increases will be driven by growth abroad, according to ABI Research.

"In North America, where cable TV penetration is nearly saturated, cable companies are losing TV subscribers. However, the continuous growth of the cable TV market in other regions will drive global cable TV revenue to increase in the coming years. In the emerging markets, cable TV will be a better choice for consumers due to its relatively low pricing," said Khin Sandi Lynn, research analyst for broadband at ABI Research.

The study also said multi-screen efforts were starting to pay off for video service providers. In addition to North American cable operators – including Comcast, Cox Communications, Cablevision, Time Warner Cable and Rogers Communications – serving up video to iPads and other tablets, French IPTV giant Orange, cable operator B.net in Belgium and U.K. satellite TV operator BSkyB have also launched multi-screen services.

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