Worldwide revenue from the provision of pay-TV services hit USD 240bn in 2010, up 11% from one year previously, despite industry fears of consumers "cutting the cord" and switching to over-the-top (OTT) services, according to Infonetics Research.
“We’re seeing continued growth in the pay-TV market, driven by providers’ ability to offer voice/video/data service bundles, a broad range of linear and on-demand content, and advanced services, such as multi-room DVR and multi-screen video delivery," said Teresa Mastrangelo, directing analyst for video at Infonetics Research. "Although cable MSOs continued to be challenged by competition from IPTV and satellite operators, the overall market remains robust, despite the attractiveness of over-the-top (OTT) services."
IPTV providers enjoyed the strongest overall revenue growth (up 45%) in 2010, with satellite operators coming in second with 13% growth in 2010, according to Infonetics Research. Cable TV operators meanwhile still account for by far the largest portion of total video service revenue, although growth in the cable video segment is believed to be slowing.
The fastest-growing markets for pay-TV services were reportedly in the Asia Pacific (APAC) and Central and Latin America (CALA) regions, driven by analogue-to-digital conversion activity and strong new subscriber growth in markets such as Brazil, India, Malaysia and Mexico.
DIRECTV leads the worldwide pay-TV market both in terms of Average Revenue Per User (ARPU) and overall video service revenue, and the top 20 revenue leaders reportedly account for 53% of total video services revenue. In terms of subscribers, Comcast maintains its lead with over 22.8mn video customers.