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

Consumers show big support for cloud DVR

Consumers in the US are interested in cloud DVRs, with Parks Associates research finding that 51% of pay-TV subscribers would like unlimited space to store DVR recordings. About 50% of US broad...

Cord-cutting still not common, but OTT soars

Even with new entrants like Sling TV and HBO Now, cord-cutting is still an uncommon phenomenon in the US: Only 7% of its 115 million households have broadband and OTT but no pay-TV. According t...

OTT market rife with opportunity for 'innovative' entrants

2015 is proving to be a blockbuster year for over-the-top (OTT) video services, but we are a long way from peak OTT says a Parks Associates study. Indeed the report, The OTT Playbook, Part II:...

OTT credential-sharing to cost $500MN in revenue in 2015

It's common for families to share log-in details for services like HBO Go, but that's bad news for programmers: over-the-top (OTT) video service credential sharing will cost the industry $500 milli...