Global pay TV subscribers ballooned to nearly 800 million in 2014 (up 5 percent), with the OTT pay TV segment providing the strongest growth, according to the 2015 IHS Infonetics Pay TV Services and Subscribers report.
Meanwhile, as cable pay TV revenue growth slowed to 1.8 percent in 2014 over the 5 years from 2014 to 2019 (largely due to sluggish subscriber growth in North America), OTT pay TV services are forecast by IHS to have the highest compound annual growth rate (CAGR) of any pay TV service.
Altogether, the global pay TV services market, including cable TV, satellite TV, telco TV and over-the-top (OTT) video, totaled $237 billion in 2014, up 7 percent from the previous year. In a growing number of pay-TV markets, service providers are expanding market presence by offering their own OTT video services.
“Dish Networks, the second-largest satellite provider in the US, is offering an OTT video service called Sling TV that’s aimed squarely at cord-cutters and cord-nevers,” explains Jeff Heynen, research director for broadband access and pay TV at IHS. “The net result of these offerings will be slower revenue growth globally as OTT services carry a lower ARPU.”