Report: Worldwide DTH Revenues to Surpass Cable Revenues by 2016

[Satellite TODAY Insider 06-28-11] DTH revenues will skyrocket past the sector’s 2010 $71 billion mark to reach $86 billion in 2016 and command nearly half of global pay TV revenues, according to a study issued June 27 by Digital TV Research.

The report forecasts a continued relative decline in the cable TV arena, which would allow the satellite industry to surpass its rival broadcast platform in five years. By 2016, cable TV revenues are projected to fall by $7 billion to $69 billion.

“At current growth levels, pay-TV revenues will have increased by 12 percent year-on-year by the end of 2016, resulting in a total of $173 billion in 2016. This is an indication of the enduring strength of the pay-TV market, even in the face of the biggest economic contraction for a number of generations,” the report said.

Digital TV Research also points out that total pay TV revenues were only up $18 billion last year. The United Stated is projected to remain the DTH market leader in 2016, even though its share of the total market will fall from 54 percent in 2006 to 41 percent in 2016.

Digital TV Research said it believes that in round subscription revenues will dip as more homes convert to low-cost programming packages. “Outside of the key pay-TV sub-sectors, video on-demand revenues are set to increase much faster than subscription revenues, however, these revenues will amount to only $5.7 billion — or 3.3 percent — of the total by 2016,” the report said.

However, the report also warns that cable operators could gain extra revenues by converting subscribers to bundles and riding a wave of digital cable revenue growth. Digital cable TV revenues are expected to increase from $43 billion in 2010 to 62 billion in 2016, fueled by an additional boost from Asia, according to Digital TV Research. “China will add $4.3 billion in digital cable TV revenues over the same period, followed by Japan with an extra $2.6 billion,” the report said.

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Report: Worldwide DTH Revenues to Surpass Cable Revenues by 2016