Infonetics: Cable TV Losing Subscribers to Satellite and IP TV; Latin America Pay-TV to Hit $23B This Year

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CAMPBELL, Calif., Nov 20, 2012 (BUSINESS WIRE) -- Market research firm Infonetics Research released excerpts from its November 2012 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

"Ongoing challenging economic conditions in the key revenue-generating markets of North America and Western Europe have resulted in slowing subscriber and revenue growth in the cable TV market," notes Jeff Heynen, directing analyst for broadband access and pay TV at Infonetics Research.

"Subscribers are far less loyal than they used to be," Heynen adds. "The cable TV industry is characterized more by churn than cord cutting, as subscribers take advantage of introductory pricing on satellite and IPTV subscriptions that's 30-50% below their cable bills. DirecTV, Verizon, AT&T, and Virgin Media have all set their sights on existing cable subscribers, and they're seeing their subscriber bases increase as cable TV subscriptions shrink."

PAY-TV MARKET HIGHLIGHTS

-- The global pay-TV market (cable, satellite, and telco IPTV) totaled $137 billion in the firsthalf of 2012 (1H12), a 9.4% increase over the same time last year

-- By 2016, Infonetics expects satellite TV revenue to overtake cable TV revenue for the first time

-- Global pay-TV service revenue is forecast by Infonetics to grow at a 7% CAGR from 2011 to 2016, spurred by emerging markets Brazil, Argentina, Mexico, Russia, India, and China

-- Latin America, the smallest but fastest-growing pay-TV market, is on track to jump 23% this year to top $23 billion

-- The number of global pay-TV subscribers will reach 719 million in 2012, up 6% from 2011

-- While cable subscribers continue to make up the lion's share (60% in 1H12) of pay-TV subscribers, growth is strongest in the telco IPTV segment, up 19% in 1H12 over 2H11

-- Verizon and AT&T are neck-and-neck for revenue share in the fast-growing telco IPTV market, followed by France Telecom and Deutsche Telekom in Europe and NTT and CTC in Asia

PAY-TV REPORT SYNOPSIS

Infonetics' biannual pay-TV services and subscribers report provides worldwide and regional market size, market share, forecasts, analysis, and trends for telco IPTV, analog and digital cable video, and satellite video service revenue, ARPU and subscribers. Pay-TV providers tracked include Airtel, America Movil, AT&T, Bell Canada, BSkyB, Cablevision, Canal Digital, CanalSat, Charter, Comcast, Cox, CTC, Deutsche Telekom, DirecTV, DISHTV, DISH Network, France Telecom, Iliad, Kabel Deutschland, KPN, KT, LG, Oi, SaskTel, SK Telecom, Sky Mexico, SureWest, Tata Sky, Telefonica, Time Warner Cable, UPC Broadband, Verizon, Virgin Media, and many others. To buy the report, contact Infonetics: http://www.infonetics.com/contact.asp .

RELATED RESEARCH

-- Latest Infonetics Pay-TV/Video research brief: http://bit.ly/Qsxg1z

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-- IPTV operators turn up the heat with multi-screen TV, content discovery, social networking

-- Operators name Cisco top dog in IP set-top boxes in new Infonetics survey

-- Video infrastructure markets growing despite challenges; big year for multi-screen TV

RECENT AND UPCOMING RESEARCH

Download PAY TV and VIDEO report highlights, tables of contents, and prospectuses at http://www.infonetics.com/login , or Infonetics' Publication Calendar http://bit.ly/zwjcRs .

-- Infonetics' 2013 Market Research Lineup

-- Service Provider Capex, Revenue, and Capex by Equipment Type (Nov.13)

-- Home Automation Service Strategies: Global Service Provider Survey (Nov. 16)

-- Telecommunications Equipment Vendor Leadership Scorecard (Nov.)

-- Multi-Screen TV Service Deployment Strategies: Global Service Provider Survey (Dec. 18)

-- Video-on-Demand (VOD) and Encoder Equipment and Video Subscribers Forecast (Dec. 21)

-- Set-Top Boxes and Subscribers Market Share and Forecast (Dec. 21)

TO BUY REPORTS, CONTACT SALES:

N. America (West), Asia, Latin America: Larry Howard, larry@infonetics.com, +1 408-583-3335

N. America (East), Texas, Midwest: Scott Coyne, scott@infonetics.com, +1 408-583-3395

Europe, Middle East, Africa: George Stojsavljevic, george@infonetics.com, +44 755-488-1623

Japan, South Korea, China, Taiwan: http://www.infonetics.com/contact.asp

ABOUT INFONETICS

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 effectively. View Infonetics' About Us slides at http://bit.ly/QUrbrV .