Video Subs Grow, Thanks To OTT Biz

Despite slipping traditional video subscriber growth, the global value of pay TV services grew by mid-single-digit percentages in 2014 -- and will continue to climb due to new OTT businesses.

Combined revenues from cable, satellite, telco and over-the-top (OTT) services climbed 7% to $237 billion in 2014, according to a report from Campbell, Calif.-based marketing research company IHS Infonetics.

A major part of future pay TV growth will come from OTT services and new “skinny” TV programming packages of 10 to 30 channels. OTT businesses grew 35% in revenue in 2014. Over the next five years, IHS estimates a 27% hike in OTT revenue.

By way of comparison, traditional pay TV provider growth -- from cable, satellite, and telco -- grew at just under 5% in 2014 -- against declining net video subscribers of around 1% to 3% per year. In the next five years, the growth is expected to around 2%.

While overall OTT revenue will grow in the near term, the average monthly cost to consumers per month will be lower than traditional pay TV packages.

Global pay TV subscribers had a 5% hike to 800 million, with OTT platforms witnessing the biggest growth.



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