US pay-TV revenues peaked in 2015, at $101.71 billion (€82.51bn), according to the eighth edition of the North America Pay TV Forecasts report from Digital TV Research. A $26.58 billion decline (26 per cent) is forecast between 2015 and 2023 to take the total down to $75.13 billion.
Cable TV revenues peaked in 2010 at $54.11 billion, but they will fall to $36.75 billion by 2023. Cable will lose nearly 12 million subscribers between 2010 and 2023 (although most of the heaviest losses have already taken place).
“Cable TV is not the only platform to suffer,” noted Simon Murray, Principal Analyst at Digital TV Research. “Satellite TV and IPTV are also losing subscribers and revenues. Much of this is due to the operators shifting their subscribers to online platforms. However, growth from vMVPDs is not expected to make up completely for the subscriber and revenue shortfalls from traditional pay-TV.”
IPTV’s fall is mainly as a result of AT&T encouraging its U-Verse subscribers to convert to DirecTV, its other pay-TV asset. This is the reverse of what has happened in most other countries. IPTV revenues spiked in 2015 at $9.60 billion, and they will halve to $4.77 billion in 2023. The number of IPTV subs topped 12 million in 2014, but it will decline to 6.26 million in 2023.
Satellite TV revenues will fall from $39.78 billion in 2017 to $33.61 billion in 2023 – or down by 16 per cent. Satellite TV subscriptions will drop by 4.08 million between end-2017 and 2023; having fallen by nearly 3 million in 2017 alone. DISH is pushing its vMVPD platform Sling TV hard, with DirecTV Now also making an impact.
The number of US traditional pay-TV subscribers will fall from a zenith of 100.34 million in 2012 to 90.35 million by end-2017 and down to 80.33 million in 2023. Pay-TV penetration will fall from 87.6 per cent of TV households in apex year 2013 to 66.7 per cent in 2023.
Although Canada is losing pay-TV subscribers, its problems are not as severe as its Southern neighbour. Pay-TV penetration reached a high point in 2013 at 85.1 per cent. The level will fall to 74.8 per cent by 2023. However, the number of pay-TV subscribers will be 11.17 million by 2023 – about the same as 2017. Pay-TV revenues will fall from a peak of $6.82 billion in 2015 to $6.01 billion by 2023.
A new study from Horowitz Research has revealed clearly the new normal in US TV, showing that 70% of TV viewers aged over 18, and 90% of 18-34-year-olds stream some of the content they watch.
Horowitz believes that over the past decade, the pay-TV landscape has undergone a radical transformation, propelled by Netflix’s and the critical mass adoption of other streaming services. Now, in the latest edition of its State of Pay TV, OTT & SVOD annual survey, the analyst sees the pay-TV industry on the verge of another tipping point ever since. According to the company’s, the industry is about to enter a new phase as the introduction of the likes of Hulu with Live TV and YouTube TV signal a new era of competition to traditional cable, satellite, and fibre optic TV providers.
The study shows that 29% of TV content viewers express interest in subscribing to one of these so-called dMVPDs; 30% of them among traditional pay-TV subscribers from cable, satellite and fibre operators. Most crucially, just over three-quarters of those interested in a dMVPD say that in order to consider the service, the overall cost will need to be lower than having a cable or satellite subscription.
When asked which features are most essential in making the decision to subscribe to a dMVPD, respondents listed as top features live TV, local broadcast channels, regional sports networks, DVR, and a variety of cable networks. In other words, facets associated with normal TV. Also considered essential were features that are often antithetical to traditional TV services: Not requiring a contract, not requiring additional hardware such as a dish or set top box, and having the ability to access your entire service on various devices simultaneously, both in and out of the home.
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A study from Digital TV Research has found that 2016 saw an estimated 254 million additional pay-TV subscribers between 2010 and 2016, an increase of 35%, to take the global total to 969 million.
The Global Pay TV Subscriber Databook found that digital cable TV created the most additions by platform – at 256 million between 2010 and 2016 just as analogue cable TV lost 218 million, dampening overall cable gains. There were 76 million extra subs for IPTV to nearly quintuple its total. Satellite TV added 77 million subs and pay-DTT five million. The survey also showed that excluding analogue cable TV, the digital pay-TV market rocketed from 380 million subscribers in 2010 onto 852 million at end-2016.
Looking at regions, the survey found that pay-TV subscriber counts doubled in 53 countries between 2010 and 2016. The Asia Pacific was the world’s largest pay-TV subscriber region, contributing three-fifths to the global total. China supplies about a third of the world’s pay-TV subscribers, with 313 million by end-2016. However, the research also noted that pay-TV subscriber numbers fell in nine countries, with the US down by 4.4 million and Italy by 2.3 million.
According to the latest findings from specialist broadband, media and entertainment industries analyst firm Leichtman Research Group (LRG) the fourteen largest cable and telephone providers in the US – representing about 95 per cent of the market – acquired about 960,000 net additional high-speed Internet subscribers in Q1 2017.
These top broadband providers now account for 93.9 million subscribers – with top cable companies having 59.4 million broadband subscribers, and top telephone companies having 34.5 million subscribers.
Findings for the quarter include:
Overall, broadband additions in Q1 2017 were 85 per cent of those in Q1 2016
The top cable companies added about 1,000,000 subscribers in Q1 2017 – 90 per cent of the net additions for the top cable companies in Q1 2016
The top telephone companies lost about 45,000 subscribers in Q1 2017 – compared to a gain of about 10,000 broadband subscribers in Q1 2016
Telco providers have had net broadband losses in seven of the past eight quarters
Over the past year, there were about 2,530,000 net broadband adds — compared to about 3,035,000 over the prior year
“With the addition of nearly one million subscribers in the quarter, the top cable and telco broadband providers in the US cumulatively now account for over 93.9 million subscribers in the US,” said Bruce Leichtman, president and principal analyst for LRG. “In the first quarter of 2017, the number of broadband subscribers surpassed the number of pay-TV subscribers in the US.”
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The US and Canadian pay-TV markets are set for serious headwinds as the industry is hit by subscribers dropping services and a significant rise in on-pay homes, says Digital TV Research.
In its North America Pay-TV Forecasts report, the analyst forecasts that the number of pay-TV subs in North America will fall by ten million from 112 million in the peak year of 2012 to 102 million in 2022, a 9% decline. Though it says that this is evidence of a massive cord-cutting problem in itself, there will also be a steep rise in the number of non-pay homes during this period. These are expected to hit 41.56 million by 2022, nearly double the amount over the same research period. The total number of TV households will increase by 11 million meaning that pay-TV penetration will drop from the peak of 87.4% in 2013 to 75.2% by 2022.
The research company adds that the number of pay-TV subscribers declined by two million in both 2015 and in 2016, and that the 2022 total will be five million lower than the end-2016 total. However, it noted that the rate of decline is actually slowing.
“Where are the lost subscribers in the decade to 2022 going?” asked Simon Murray, principal analyst at Digital TV Research. “Some analogue cable subscribers will give up paying for TV services rather than convert to an often more expensive digital platform. Cord-cutting is also a factor. It has been somewhat exacerbated by the traditional pay-TV operators starting their own OTT platforms: satellite TV platform Dish provides Sling TV and DirecTV Now has recently started. Other distractions include Hulu, HBO Now and, of course, Netflix and Amazon Prime Video.”
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Subscription video-on-demand (SVOD) viewing is increasing at a fast rate, with 63.8 percent of adults now using a service. That shows an increase of 8.4 percent from the previous year.
That data comes from TiVo’s Q4 2017 pay TV and online video trend report, which used a third-party company to survey 3,079 adults 18 and over in the U.S. and Canada.
The most popular SVOD is Netflix with 52.8 percent of those surveyed, followed by Amazon Prime with 26.3 percent and Hulu with 11.8 percent.
People are overwhelmingly happy with their SVOD’s selection: 92.5 percent watch SVOD content daily, a year-over-year increase of 2.3 percent, and they’re watching more content on a daily basis than they did previous year. Also, 81.2 percent are happy with their ability to find SVOD content they want to watch, showing a slight year-over-year improvement.
The majority of SVOD subscribers (55.6 percent) pay between $6 and $14 per month. But many would like more of a deal: 68.0 percent said if Netflix or Hulu offered a free tier with commercials, they would consider using it. This number shows a slight decrease from the previous quarter. Of the 32.0 percent who wouldn’t consider a free commercial-sponsored tier, 85.1 percent don’t even want commercials targeted to their interests.
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Sky has hit back in its carriage dispute with Discovery, which threatens to see the removal of 12 of the programmer’s channels from its pay-TV and NOW TV services, accusing it of “misleading claims and aggressive actions”.
In a Statement posted on its website, Sky says it has worked “really hard” for more than a year to get a deal done for its customers with Discovery, saying it is disappointed with its misleading claims and aggressive actions. “We now feel it’s time to set the record straight. Because despite our differences, we love Discovery too,” declares Sky.
“Sadly, we have now had to prepare for Discovery to take their channels away from Sky customers, as they have threatened to do. It is Discovery’s choice to do this, not ours. We never left the negotiating table and they haven’t come back to it since they made their threats public this week,” it advises.
“Sky doesn’t boot channels off our platform. If Discovery don’t want their channels to disappear, as their public campaign suggests, they could have made arrangement to stay on Sky, including free to air with advertising funding or with their own subscription, but they’ve chosen not to do so,” it says.
“Our commitment to our customers is this: We will spend every penny that we were going to pay to Discovery on more and better content that our customers value. This will come from sources around the globe and home grown shows and documentaries from the UK. We will continue to offer customers a huge range of content including hundreds of shows from The History Channel, National Geographic, PBS, Sky Arts and Sky Atlantic, along with more amazing sport on Sky Sports Mix, available to all our customers,” it states.
read more here: http://advanced-television.com/2017/01/30/sky-explains-discovery-carriage-stance/
One size does not fit all in the global pay-TV industry, with research from Teligen, covering 115 providers in 31 OECD countries, showing significant price differences between countries and providers.
The Strategy Analytics division’s new report, Pay TV Prices in OECD Countries, November 2016, not only revealed significant differences in package prices between providers in the same country but also showed great variation in the structures and underlying technologies of the pay-TV offers, even when benchmarking the most basic offers from each provider.
Fundamentally pay-TV has remained stable in most countries over a period of time, despite the introduction of skinny bundles driving the minimum price down in select countries such as Canada and Denmark. This was also the case the last time Strategy Analytics investigated the phenomenon.
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Pay-TV operators can no longer simply rely on the strength of their content offering to maintain subscriber loyalty, but must raise their customer relationship management game to gain ground in an increasingly competitive marketplace.
This is the top-line find of a survey of more than 6,200 consumers in Australia, Brazil, Germany, Singapore, the United Kingdom and the United States from subscription, billing and CRM specialist Paywizard. The Facing the Perils of Failed Customer Experience survey carried the warning for operators that more than four-fifths of consumers would cancel a pay-TV subscription due to poor customer experience, such as if service and support were lacking and the company seemed out of touch with their needs. Indeed, the data showed that a quarter have actually done so in the past year.
By contrast, the survey also found that almost half (46%) of consumers have retained a digital pay-TV subscription they might otherwise have cancelled because of positive customer experience. The findings show, said Paywizard, that younger consumers place greater value on customer experience when it comes to sticking with a provider. Just under three-fifths of those under age 35 say this has been a factor in keeping a service over the past year.
Nearly three-quarters of consumers who have added a digital pay-TV subscription over the past year end up increasing their overall spend on television and entertainment. On the other hand, more than a quarter still reduced total TV spend by downgrading their general pay-TV package or cutting other subscriptions – making clear that there are losers among operators that fail to build strong bonds with their customers.
To be on the winning end of consumers’ decisions regarding their TV and entertainment budgets, Paywizard advises pay-TV operators to overcome a ‘dip-in, dip-out’ attitude on the part of subscribers. The survey revealed that most consumers intend to drop some pay-TV services – for instance, cutting part of a cable or satellite package – if they take another, such as an on-demand video subscription. Almost two-thirds of those who have not taken a new subscription in the past would cut back on other digital subscriptions or downgrade a general package to bring down the cost if they were to sign up to a new or additional pay-over-the-top (OTT) service.
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