Satellite video and IPTV gaining fast on cable video; Netflix, Amazon threat insignificant so far

Campbell, CALIFORNIA, November 1, 2011—Market research firm Infonetics Research today released excerpts from its Pay TV Services and Subscribers report, which forecasts and analyzes the telco Internet protocol television (IPTV), cable video, and satellite video services markets.

ANALYST NOTE

"In 2008, cable video made up 59% of the global pay TV market, satellite video brought in 38% and IPTV was just a drop in the bucket. Now cable operators are being challenged not only by attractive pricing and services from IPTV and satellite operators, but by all over-the-top (OTT) video services, like Netflix and Amazon On-Demand, and by connected-TV devices, which are prompting consumers to cut the cord. Net new cable video subscribers continue to decline in North America and EMEA, and the small increases in Asia and Central and Latin America aren't offsetting those declines. While we don't expect OTT to have a significant impact on pay TV subscribers because operators are responding to OTT with their own enhanced delivery offerings, we do expect cable video's share of pay TV revenue to decline as satellite video increases -- nearly catching up to cable by 2015 -- while IPTV services grow to 15% of the market," notes Jeff Heynen, directing analyst for broadband access and video at Infonetics Research.

PAY TV MARKET HIGHLIGHTS

• The global pay TV market, including telco IPTV, cable and satellite video services, totaled $125 billion in the first half of 2011 (1H11) and is forecast by Infonetics Research to grow to $353 billion by 2015
• Most of the future growth in the pay TV market will come from satellite video and telco IPTV services
• North America remains the highest-value pay TV market, benefitting from the highest average revenue per user (ARPU), followed by Asia Pacific, which benefits from a pay TV subscriber base nearly 4 times the size of that of North America
• DirecTV and Comcast are the global market leaders for pay TV service revenue and subscribers in 1H11, respectively, with DirecTV continuing to enjoy the highest ARPU in the industry and Comcast now with 22.5 million subscribers
• In the first half of 2011 (1H11), the top 20 pay TV revenue leaders accounted for 52% of the revenue, while the top 20 subscriber leaders represented just 29% of the subscribers

REPORT SYNOPSIS

Infonetics' biannual Pay TV Services and Subscribers report provides worldwide and regional market size, service provider revenue and subscriber market share, forecasts, and in-depth analysis for telco IPTV, analog and digital cable video,, and satellite video services. The report includes pay TV revenue and subscriber market share for Airtel, America Movil, AT&T, Bell Canada, BSkyB, Cablevision, Canal Digital, CanalSat, Charter, Comcast, Cox, CTC, Deutsche Telekom, DirecTV, DISHTV, DISH Network, France Telecom, Illiad, Kabel Deutschland, KPN, KT, LG, NetServicos, Oi, SaskTel, SK Telecom, SkyTV, Sky Mexico, SureWest, Tata Sky, Telefónica, Time Warner Cable, UPC Broadband (Liberty Global), Verizon, Virgin Media, and others.

• Latest Infonetics Video newsletter: http://bit.ly/v5lGdw
• Client Conference Call: Pay TV report highlights: Thursday, Nov. 3, 11:00 AM Eastern
• Video-on-demand servers up, video encoders down in 2Q11; growth to resume
• Pace overtakes Motorola in pay-TV set-top box market in 2Q11; STB market to peak in 2011
• IPTV services getting highly personalized, highly integrated, portable and on-demand
• Carriers identify critical IP set-top box features in new survey

UPCOMING VIDEO RESEARCH

Download report prospectuses, tables of contents, etc. from Infonetics' online portal at http://www.infonetics.com/login (see VIDEO for 2011 and new 2012 services).

• Q3 Cable, Satellite, IPTV, and OTT Set-Top Boxes and Subscribers Market Share/Forecast
• Q3 Video-on-Demand, Encoder, and Edge QAM Equipment and Video Subscribers
• Home Network Video Distribution Strategies: Global Service Provider Survey
• Hybrid IP Set-Top Box Features and Vendor Leadership: Global Service Provider Survey (2012)
• IPTV Service Deployment Strategies: Global Service Provider Survey (2012)
• Multi-Screen TV Service Deployment Strategies: Global Service Provider Survey (2012)

SALES

• Larry Howard, VP (West NA, APAC, CALA): larry@infonetics.com, +1 408-583-3335
• Scott Coyne, Sr. Account Dir. (East NA, Texas, Midwest): scott@infonetics.com, +1 408-583-3395
• George Stojsavljevic, Sr. Account Dir. (EMEA): george@infonetics.com, +44 755-488-1623
• Takashi Kimura, TAK Analytics, Sales (Japan): takashi.kimura@takanalytics.com, +81 3-6408-5566
• Hinton Information Services, Taiwan: www.hintoninfo.com.tw, +886-2-2799-3110 x220
• Doug Moon, MBAP Sales, Korea: dougm@mbap.co.kr, +82-2-3453-9400

Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

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