Report: Emerging markets drive growth in pay-TV market
Despite the emergence of various over-the-top video providers, the pay-TV market will continue to grow thanks to emerging markets in places such as Latin America.
For example, a report by Infonetics Research said DirecTV Latin American saw a 15 percent increase in satellite subscribers year-over-year from the third quarter of 2012 to the same quarter last year.
“What’s driving growth in pay-television are the emerging markets of Latin America, China, and India. India and Latin America are adding satellite and cable subscribers, while China is seeing an increase in IPTV subscribers,” said Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research.” Latin America’s economy, in particular, is performing well, with companies investing in Brazil ahead of the FIFA World Cup and consumers signing up for pay-TV services to the tune of 9 percent growth in the third quarter of 2013 from the year-ago period.”
According to Infonetics, the top five satellite providers by subscribers for the third quarter of last year were, in rank order, DirecTV, Dish Network, DirecTV Latin America, Tata Sky, and British Sky Broadcasting.
Topping the leaderboard for IPTV subscribers over the same time frame were, in alphabetical order, AT&T, China Telecom, Iliad Group, Orange, and Verizon.
The report said that last year’s decline in cable subscribers across all operators was due more to churn than cord cutting as consumers defected to IPTV and satellite, often to take advantage of promotional offers.