Report: Pay-TV Revenues to Rise 7 Percent This Year

SINGAPORE: Pay-TV revenues are expected to top $312 billion worldwide this year, according to ABI Research, a year-on-year gain of 7 percent.

While growth slowed last year as a result of the recession, 2010 will see operators benefiting from new subscribers and increased take-up of premium channels and advanced services like VOD and DVRs. A key trend for the year is the rapid gains being made by telco services, as broadband penetration rates and Internet speeds increase. ABI Research anticipates that telco TV service revenues will top $17 billion in 2010. Telcos TV revenues are primarily coming from Western Europe—59 percent—followed by North America and Asia Pacific.

Raising ARPU will be a major priority for pay-TV operators this year, ABI says. “Pay TV operators need to aggressively promote the purchase of HDTV set top boxes in order to lift ARPU,” notes research associate Khin Sandi Lynn. “This does not have to come through subsidies. Carriers could do a better job of promoting the benefits of HD for the end-user viewing experience. Furthermore there is the promise of 3D TV. At present many users are not clear what the benefits are.”