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

Connected CE, streaming devices to dominate holiday sales

Connected entertainment devices, including game consoles and streaming media devices, will be among the most popular gifts for the holiday season, according to Parks Associates. Among connected...

Half of pay-TV subs with HBO OTT would cut the cord

HBO's prospects for picking up a new audience with a standalone streaming service are looking pretty good: about 17% of US broadband households are likely to subscribe to an over-the-top (OTT) vide...

Entone readies Magi hybrid TV DVR for Cable

Entone is announcing its Magi Hybrid CATV Media Gateway at the SCTE Cable-Tec Expo, targeted at cable operators looking to deliver an integrated hybrid TV service that combines live TV, DVR and ove...

Apple Mulls Time Warner Takeover; And Possibly Netflix

Parks Associates recently found that Amazon has moved into a virtual tie with Google at 22% of sales for streaming media players (Roku claims the top spot). Apple TV comes in at fourth place with 2...