Despite fierce competition between video service providers and the threat from OTT (over-the-top,) video viewed online, Infonetics Research still predicts the market will top $250 billion worldwide by 2014, according to its biannual Video Services and Subscribers report.
In the United States, cable operators Comcast and DirecTV top the ranking of video service providers by revenue, while Sky continues to rule EMEA with its presence in the UK, Ireland, Germany, Italy and Austria.
"Increased competition among video service operators will help keep monthly subscription fees in check, which will offset some of the growth expected from incremental revenue via video on demand, digital video recording, and ‘start-over' services," says Jeff Heynen, directing analyst for broadband and IPTV at Infonetics.
"However, the biggest threat to revenue growth is the continued rise of online (over-the-top) viewing, where users can simply eliminate their monthly TV subscription in favor of streamed programming delivered over the Internet via sites like Hulu and YouTube, and aggregating by services such as Boxee."
The report tracks telco IPTV, cable video, and satellite video services and subscribers globally.
Telcos' IPTV service revenue will grow during the forecast five-year period, replacing revenue losses from decreasing land lines, but the report finds that ARPU for such service is currently lower than ARPU for cable and satellite services. Still, operators worldwide including AT&T, Deutsche Telekom, Orange and China Telecom are adding video subscribers at a rapid clip.
- see the release
Managed video services heat up at LifeSize
Google TV and the OTT space: Winners and Losers? It's still a wide-open game
For AT&T, U-verse saves landline segment's bacon in an otherwise dismal first quarter earnings report