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Pay TV market growth expected to slow by 2016

Monday, June 27th 2011 by Nigel Adie
Growth in pay TV revenues 'to slow by 2016'

The sector is set to earn revenues of $173 billion in 2016.

Growth in the global pay TV market is set to slow over the next five years, according to Digital TV Research.

In its Digital TV World Revenue Forecasts report, the organisation claimed revenues from the sector will reach $173 billion (£108 billion) by 2016. Although this figure represents a $49 billion increase on the 2006 total, it is only $18 billion - or 12 per cent - above the level recorded in 2010.

Study author Simon Murray attributed the trend to the increasing popularity of bundling TV packages with broadband and landline services, explaining: "Subscription revenues will stutter as more homes convert to bundles, thus reducing TV-related income."

By the end of this year, cable TV revenues are set to be overtaken by satellite broadcasting takings, he added, while income from on-demand platforms will increase at a "much faster" rate than returns generated from subscription payments.

His comments come after ABI Research revealed the total number of pay TV subscriptions rose by 11.3 million in the first quarter of 2011, with overall volumes expected to exceed 759 million by the end of this year.

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