Global pay-TV subs set to grow

There will be over 1.4 billion subscribers worldwide for TV services by 2013.

Broadband households in Europe and the US consistently rank ‘primetime anytime VOD services’ as the most valuable service out of all TV 2.0 offerings, according to Parks Associates.

The international research firm says that primetime anytime services, which allow viewers to watch a show on-demand on their TV regardless of its original air date, will help service providers gain and retain customers in the competitive global market for TV services.

“Online video is not robbing primetime of its audience but supplementing it,” said Jayant Dasari, research analyst, Parks Associates, in a statement. “The majority of US broadband households use online video to catch up on their TV viewing, and 36% of those who pay for Internet video content have increased consumption of primetime television. Moving video from the PC to the TV is a natural progression, one that aligns with consumers’ current behavior.”

Competition among service providers has increased substantially in past few years. For example, while cable operators retain the largest share of the US television service market, subscriptions to telco/IPTV services grew over 110% from 2007 to 2008. Providers can overcome the challenges of this shifting market by leveraging primetime anytime services, which will increase customer satisfaction and create avenues for new revenue-generating service strategies, such as ad-supported VOD offerings.

“Terrestrial television is still a major source for viewers in many of the major Western European markets including France, Italy, Spain, and the UK,” added Dasari. “Almost 44% of the television viewership in these markets relies on terrestrial services. Digital terrestrial television will continue to play an important role in the TV market in Europe over the next five to ten years.”