IPTV revenue will reach $21.3 billion by 2018, report says

Satellite TV (DTH or DBS) revenues are predicted to overtake cable TV revenues in 2013, but the fastest growing platform is IPTV, according to data compiled by Digital TV Research for its Digital TV World Revenue Forecasts, which determined that total global pay TV revenues will climb $19 billion from 2012 to 2018 to top out at $203 billion annually.

IPTV revenues will climb from $12 billion in 2012 to $14.2 billion this year before reaching $21.3 billion in 2018.

Digital TV Research global pay TV revenues

The research shows that satellite TV will account for 45.9 percent of total revenues this year and 47.6 percent by 2018 as cable drops from 45.9 percent to 40.7 percent in those same time periods. IPTV will grow from 7.5 percent to 10.5 percent in the same time period, making it the fastest growing pay TV revenue provider.

Overall revenue growth annual growth will slog along at 3.2 percent in 2013 before dropping below 2 percent by 2015, the research also showed.

The U.S. will continue to lead the pay TV revenue parade, even though overall revenues will continue to fall thanks to bundles and competition. Cable TV will take the biggest hit ($8.3 billion) in the United States as IPTV (up $1.9 billion) and DTH satellite (up $1.3 billion) pick up the slack.

Dollars-wise, global cable TV revenues peaked in 2012 when they hit $86.9 billion and will slide to $82.6 billion by 2018, even as cable operators gain extra revenues from service bundles. DTH, meanwhile, will reach $97 billion in 2018, a $14 billion increase over 2012's $83 billion.

Revenue movement is about even throughout the world, the researchers said. Fifteen countries will see revenue declines between 2012 and 2018 while revenues more than double in another 18 countries, including countries in Africa, Indonesia and Vietnam. Other fast-growing pay TV provider countries include Brazil, India and China, which became the second largest pay TV revenue generator in 2012.

Another piece of research by Point Topic also had good vibes about IPTV, noting that IPTV subscriptions increased by 21 percent as 13.7 million new paying customers came aboard during 2012.

Europe and East Asia account for more than 75 percent of the global IPTV subscriber base while North America accounts for another 15 percent, the research said.

For more:
- see this press release
- Telecompaper has this story

Related articles:
Cord cutting has impact in Canada, but IPTV market share grows 12 percent
Europe, Asia Pacific dominate IPTV market, says SNL Kagan

Suggested Articles

YouTube TV’s price hike gives cable operators breathing room to run the next big TV race, which will be fought and won on the TV UX battleground.

Charter Communications said it will add five “Latino targeted TV networks” to its Spectrum TV lineup.

Among pay TV subscribers and broadband-only subscribers, YouTube and Netflix were among the favorite services featured in makeshift video bundles.