Global Pay TV Expect To Hit $312M in 2010

Discovery

TV advertising revenues continues to show strength post-recession -- as do pay TV revenues. Revenues from global pay TV services -- cable, satellite, IPTV -- have climbed 9% in the second quarter to $58 billion, versus the same period in 2009, per the to New York-based market researcher ABI Research. For the year overall, the company has said global pay TV revenues will get to $312 billion in 2010 -- a 7% gain over 2009.

ABI Research says these revenue hikes are largely due to higher-priced programming packages, which include HD programming and other advance services.

Cable TV programming services are still the big producers -- pulling in a 52% market share of the overall pay-TV revenue take -- or $30 billion in the second quarter. Satellite TV distributors are not that far behind, with $24 billion in pay TV money.

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Overall, satellite TV operators are growing faster -- up 12% versus the same period last year. This is the result of slower growth due to more maturer cable TV markets, as well as declines in cable market share attributed to inroads made by telco video programming services.

Growth in satellite is also the result of higher-priced programming packages. For example, ABI Research notes the average monthly Direct TV subscriber bill climbed to $87.91 in the first quarter 2010 from $83.16 in the second quarter 2009. Much of this came from packages that included HD programming.

Telco and IPTV programming services still comprise a small piece of the pie. ABI expects this segment to hit $17 billion for 2010, but growing rapidly -- with 20% compounded revenues increases over the next five years -- totaling more than $40 billion at the end of 2015.

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