SOURCE: Infonetics Research

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May 21, 2015 13:45 ET

Pay TV Providers Embrace Over-the-Top Video and 'Skinny' Bundles to Stave Off Cord-Cutting: IHS Infonetics Report

CAMPBELL, CA--(Marketwired - May 21, 2015) - The global pay TV services market, including cable TV, satellite TV, telco TV and over-the-top (OTT) video, totaled $237 billion in 2014, up 7 percent from the previous year, according to the 2015 IHS Infonetics Pay TV Services and Subscribers report from IHS (NYSE: IHS).

"In a growing number of pay TV markets, service providers are expanding market presence by offering their own OTT video services, primarily as apps on tablets and third-party OTT media servers. Dish Networks, the second-largest satellite provider in the US, is offering an OTT video service called Sling TV that's aimed squarely at cord-cutters and cord-nevers," said Jeff Heynen, research director for broadband access and pay TV at IHS. "The net result of these offerings will be slower revenue growth globally as OTT services carry a lower ARPU."

"Pay TV providers are also actively marketing 'skinny' bundles of 10 to 30 channels in more affordable packages. Verizon has gone so far as to introduce multiple bundles of channels that subscribers can add on top of their base channels to create a custom channel lineup," Heynen said.

PAY TV MARKET HIGHLIGHTS

Global pay TV subscribers ballooned to nearly 800 million in 2014 (up 5 percent); for the first time, the OTT pay TV segment provided the strongest growth.

Over the 5 years from 2014 to 2019, OTT pay TV services are forecast by IHS to have the highest compound annual growth rate (CAGR) of any pay TV service.

Cable pay TV revenue growth slowed to 1.8 percent in 2014, largely due to sluggish subscriber growth in North America, where net video subscribers are declining around 1 to 3 percent annually.

VIDEO SERVICES REPORT SYNOPSIS
The 2015 IHS Infonetics pay TV services and subscribers report provides worldwide and regional market share, market size, forecasts through 2019, analysis and trends for telco, cable (analog, digital), satellite and OTT pay TV service revenue, ARPU and subscribers. Pay TV providers tracked include AT&T, Beijing Gehua, BCE (Bell Canada), British Sky Broadcasting, Cablevision, CanalSat, Charter, China Telecom, Comcast, Cox, DirecTV, DISH Network, J:COM, Jiangsu Cable, Kabel Deutschland, Netflix, Orange, Shaw, Sky Italia, Tata Sky, Time Warner Cable, UPC Broadband, Verizon, Virgin Media and many others. To purchase the report, please visit: www.infonetics.com/contact.asp.

PAY TV SUBSCRIBER DATABASE
The companion IHS Infonetics Pay TV Subscriber Database and Video Equipment Tracker, published in May 2015, provides additional data and demographics on the cable, satellite and telco pay TV subscribers and equipment of more than 140 providers around the world. Log in for details: https://www.infonetics.com/cgp/login.asp?id=1034.

RELATED RESEARCH

Telcos, Cablecos Ramp Spending on Premium Broadband Gear in Race to Gigabit:
http://www.infonetics.com/pr/2015/4Q14-Broadband-CPE-Market-Highlights.asp

Fixed Broadband Subscribers Projected to Approach 1 Billion in 2019, Led by China:
http://www.infonetics.com/pr/2015/FTTH-DSL-Cable-Subscribers-Market-Highlights.asp

Record Year for Broadband Equipment Market in 2014, Thanks to Gigabit Mantra: http://www.infonetics.com/pr/2015/4Q14-PON-FTTH-and-DSL-Aggregation-Market-Highlights.asp

Broadband Operators Reveal Ambitious Network Upgrade Plans:
http://www.infonetics.com/pr/2014/Fixed-Broadband-SP-Leadership-Survey-Highlights.asp

Shift to Generic Hardware and Virtualization Pressuring Video Equipment Prices:
http://www.infonetics.com/pr/2014/1H14-Broadcast-and-Streaming-Video-Eqpmt-Market-Highlights.asp

RECENT AND UPCOMING RESEARCH
Download the IHS Infonetics' 2015 service brochure (http://www.infonetics.com/downloads/2015-Infonetics-Research-Services-Brochure.pdf) or log in: www.infonetics.com/login.
- FTTH, DSL, and Cable Subscribers Forecast (Apr.)
- Home Networking Devices Forecast (Apr.)
- Residential Gateway Strategies and Vendor Leadership: Global Survey (May)
- Pay TV Subscriber Database and Video Equipment Tracker (May)
- Set-Top Boxes Forecast (June)
- Broadcast and Streaming Video Equipment Forecast (June)

IHS INFONETICS WEBINARS (https://www.infonetics.com/infonetics-events)
- The Future Cable Network: Enabled by Packet Transport and Virtualization (May 27: Register)
- Getting to a Gig: Technology Options for Premium Broadband (Watch now)
- The Evolving Broadcast Video Infrastructure (Sponsor)
- Cable's Software-Defined Networking (SDN) Future (Sponsor)

TO PURCHASE RESEARCH, PLEASE CONTACT:
- North America (West), Asia: Larry Howard larry.howard@ihs.com +1 408-583-3335
- North America, Latin America, EMEA: Scott Coyne scott.coyne@ihs.com +1 408-583-3395
- China, Southeast Asia, India: Jeffrey Song jeffrey.song@ihs.com +86 21-3919-8505
- Japan:Takashi Kimura, TAK Analytics takashi.kimura@takanalytics.com +81 3-6408-5566

About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical areas that shape today's business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.

IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. © 2015 IHS Inc. All rights reserved.

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Contact Information

  • News Media Contact:
    Jeff Heynen
    Research Director, Broadband Access and Pay TV
    IHS
    +1 408-583-3359
    Email contact
    Twitter: @JeffHeynen