The worldwide pay TV market is expected to surpass 920 million subscribers by the end of 2014, according to ABI Research. Overall, pay TV average revenue per user (ARPU) is expected to drop slightly due to increasing price competition, but at a lower rate compared to the ARPU drop in 2013. “The growing number of HD subscribers as well as major sporting events such as the World Cup 2014 have contributed to improving ARPU. As a result, the total pay TV market is expected to generate over $US269 billion by the end of 2014,” commented Jake Saunders, VP and practice director of Core Forecasting.
Notably, United States’ satellite TV operator DirecTV added 543,000 subscribers in 2Q 2014 in Latin America. It was a sharp increase compared to subscriber net additions of 165,000 in the same quarter of 2013. ARPU in local currency also increased 8 per cent from 2Q 2013. Subscriber growth in Latin America was mainly driven by the World Cup 2014 matches, although DirecTV did not benefit from the event as it lost around 39,000 subscribers in the United States.
“ABI Research anticipates that the worldwide pay TV subscriber base will grow to nearly 1.1 billion subscribers generating $US323 billion by 2019,” added Khin Sandi Lynn, industry analyst.
The IPTV market share grew over 1 percentage point in 2Q 2014 compared to 2Q 2013. Competition in the global pay TV market is growing with the rapid evolution of IPTV and online video services.
This story also appears on IBC’s Content Everywhere.