Global Pay-TV Market Surpasses 900 Million Subs

SINGAPORE: The global pay-TV subscriber base increased more than 5 percent last year, bringing the total to 901.1 million worldwide, according to ABI Research.

The average revenue per user (ARPU) was down slightly, to $23.80 in 2013 (from $24.10 in 2012). Pay-TV ARPU in North America increased around 4 percent to $76 in 2013. This increase, according to major pay-TV operators in North America, is due to a growth in the proportion of customers with advanced pay-TV set-top boxes and upgraded HD programming packages. In Latin America, an unfavorable currency exchange rate contributed to a U.S. dollar equivalent decline in pay-TV ARPU for the region, which saw a 5-percent reduction to $34.60.

Jake Saunders, the VP and practice director of core forecasting at ABI Research, said: "In general, the pay-TV market grew both in terms of subscribers and service revenue across all pay-TV platforms. Overall pay-TV service revenue reached almost $250 billion in 2013."

Subscription of HD TV services continued to grow in 2013, accounting for 41 percent of total pay-TV subscriber base in 2013. ABI Research is predicting that the subscriber base of HD TV services will continue to increase to 57 percent of total pay-TV subscribers in 2019.

ABI Research is forecasting that the worldwide pay-TV subscriber base will reach 1.1 billion subscribers in 2019. Increasing broadband connectivity will help IPTV market growth. "The IPTV market is likely to grow at a faster pace than other platforms, with a CAGR of 9 percent over the next five years to reach 160 million subscribers in 2019," added Khin Sandi Lynn, industry analyst at ABI Research. "The global pay-TV market is expected to generate $317.5 billion in 2019."