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In Face of Increasing Pressure from OTT Video Services, Pay TV Providers Step Up Their Game

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ABI Research

05 Jun, 2018, 14:00 GMT

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By Integrating OTT Services, Worldwide Pay TV market to reach US$295 million revenue in 2022

OYSTER BAY, New York, June 5, 2018 /PRNewswire/ -- Despite the competition from OTT video services, the worldwide pay TV market has been growing at a steady pace. According to recent market research from ABI Research, a market-foresight advisory firm providing strategic guidance on the most compelling transformative technologies, the global pay TV market including satellite, cable, and IPTV services is expected to generate US$295 million in 2022.

Competition from OTT services is significant in developed markets where the pay TV market is mature. For example, in North America, traditional pay TV services lost more than 3 million subscribers in 2017 mainly due to customers switching from satellite, cable, or IPTV services to video streaming services. "OTT is becoming a preferred video viewing platform due to its low-cost and availability on multiple devices without a long-term contract requirement," noted Khin Sandi Lynn, Industry Analyst at ABI Research.

Pay TV operators are smartly reacting to the trend by adding OTT services to their platform. DirecTV NOW and Dish Network's Sling are two examples of video streaming services provided by pay TV operators. Such services can be accessed through video streaming adapters or mobile devices and provide so-called "skinny bundles", which are usually low-cost packages with an option to add channels at an extra cost. Similarly, pay TV operators are starting to deploy Android-based boxes to provide OTT service together with traditional TV platforms. Swedish cable operator Com Hem recently launched Android-based TV Hub, which allows subscribers to access linear TV channels and streaming services. Android-based set-top boxes are a good option for pay TV operators to compete with OTT service providers while maintaining customer loyalty.

Regionally, the pay TV market in the Asia-Pacific has grown more than other regions, reaching a total subscriber base of 656 million in 2017, a 7% YoY increase. The pay TV market is expected to grow at a higher rate in the developing markets in the years to come, while mature markets such as North America and Europe are likely to see a slight decline or sluggish growth. "Pay TV and OTT offerings can vary dramatically between regions and between countries in terms of content availability and price. OTT adoption in mature markets will impact pay TV adoption there, but the more reliable delivery and all-in-one nature of pay TV will prove valuable in those developing markets," Lynn concluded.

These findings are from ABI Research's Pay TV Subscribers report. This report is part of the company's Video, VR & OTT research service, which includes research, data, and Executive Foresights.

About ABI Research

ABI Research provides strategic guidance for visionaries needing market foresight on the most compelling transformative technologies, which reshape workforces, identify holes in a market, create new business models and drive new revenue streams. ABI's own research visionaries take stances early on those technologies, publishing groundbreaking studies often years ahead of other technology advisory firms. ABI analysts deliver their conclusions and recommendations in easily and quickly absorbed formats to ensure proper context. Our analysts strategically guide visionaries to take action now and inspire their business to realize a bigger picture. For more information about ABI Research's forecasting, consulting and teardown services, visionaries can contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.

Contact Info:  




Global               


Deborah Petrara     

Christopher Leary

Tel: +1.516.624.2558

Tel: +1.516.624.2544

pr@abiresearch.com  

pr@abiresearch.com

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