Providing market intelligence for more than 35 years

Rapid TV News

Video services, pay-TV and OTT set for big change

Consumer viewership of online video has dramatically increased in the past few years, and this trend will continue in 2012, according to a research note from Parks Associates. Parks said that this trend will impact ARPU and overall revenues for pay-TV operators and resonate throughout the content ecosystem in 2012. In the past twelve months alone, a full 12.7% of U.S. pay-TV subscribers downgraded their pay-TV service.

That does not mean that pay-TV operators will stand idly by. They will continue to explore new and creative ways to monetise their investments in VOD and multiscreen delivery systems as a deterrent to subscriber and revenue loss due to online video and OTT services. And, they're making progress: By mid-2011, 80% of U.S. pay-TV subscribers could receive on-demand content on a non-TV screen in their home through a service provided by their pay-TV provider. By the end of 2012, the impact of multiscreen offerings on subscriber churn and business models will be clearer to operators, Parks noted.

There are a few bright spots for pay-TV beyond multiscreen reach. Fuelled by growing economies and foreign investment (particularly from Western Europe), Latin America is a hotbed for television delivery systems and services, the firm found. Of all global markets, Latin America is the fastest growing market for pay-TV services, increasing by 18% between 2010 and 2011.

From the article, "Video services, pay-TV and OTT set for big change" by Michelle Clancy

 

Previously In The News

More than two-fifths of US broadband homes take online video

The result of increased access in US homes not only to high speed networks but also over-the-top (OTT) content is driving a huge uptake in online video according to new research by Parks Associates...

Roku, Apple TV penetration doubles in two years

The number of US broadband households with a streaming video media device, such as a Roku or an Apple TV, has doubled since 2011, reaching 14% in 2013, new research has revealed. Parks Associat...

TV users gravitate towards dedicated apps

In a move that could have profound ramifications for programming, more research has confirmed the trend that TV users are increasingly turning to dedicated apps to access TV channels. According...