Revenue generated by the premium video services market in the US, an area comprising pay-TV, mobile video, DVD, broadband video and theatre/box office receipts, is expected to rise to $277 billion by 2010, up from less than $200 billion in 2006, according to a new forecast from iSuppli.
Much of that growth will be driven by increasing revenue for pay-TV services, particularly for the fast-expanding internet protocol television (IPTV) area.
Frank Dickson, principal analyst for multimedia content and services at iSuppli, said: “The pay-television industry is the 800-pound gorilla in the entertainment space.
“The pay TV market is an established and lucrative one, representing about $120 billion in worldwide sales in 2006. The segment is dominated by direct-to-home satellite and digital and analogue cable TV services. However, the telecom companies are entering the market with aggressive internet protocol television offerings that are sure to spur an arms race in pay television and in quadruple-play services.”
IPTV is the fastest-expanding segment of the pay-TV market, with revenue expected to increase to $23.5 billion in 2010, rising at Compound Annual Growth Rate (CAGR) of 103% from $681 million in 2005, iSuppli predicts.
| |
| Worldwide Subscription Revenues for Pay Television Services – Satellite, Cable and IPTV (Revenue in Millions of US Dollars) |
| |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
| Satellite |
$31,390 |
$35,190 |
$40,263 |
$45,220 |
$50,067 |
$54,929 |
$58,751 |
| Cable |
$68,808 |
$73,692 |
$78,178 |
$83,586 |
$88,460 |
$92,469 |
$96,074 |
| IPTV |
$419 |
$681 |
$1,592 |
$4,413 |
$9,619 |
$15,998 |
$23,466 |
| Total Pay Television |
$100,616 |
$109,563 |
$120,032 |
$133,219 |
$148,146 |
$163,397 |
$178,291 |
| Source: iSuppli, February 2007 |
Recent research from the price comparison website uSwitch.com said that IPTV is set to take off this year as it enters the mainstream (see IPTV To Take Off In 2007).
In addition, a survey carried out by Accenture and the Economist Intelligence Unit found that more than half of communications industry executives believe that IPTV can generate significant revenue within the first three years of service (see IPTV Could Generate Significant Revenue Within 3 Years)
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