The analysts firm predicted that North American television subscribers would drop 0.2 percent from its 2011 mark by the end of 2012, as cable TV operators in United States face a continuous decline in service take-up and renewal. Cable TV operators lost nearly 0.8 million subscribers in the first two quarters of 2012, but grew their broadband subscriber base.

ABI Research Practice Director of TV and Radio Sam Rosen highlighted that IPTV services have less penetration than cable or satellite in the U.S. market, but have gained around 0.6 million subscribers in the first half of 2012.

   “As broadband adoption grows, it is likely that pay-TV subscribers are switching to Internet TV services,” Rosen said in the report. “Internet TV services are cheaper than traditional pay-TV services or even free of charge. Services such as Netflix, Hulu, YouTube, etc. are cheaper alternatives for pay-TV subscribers especially in these uncertain economic times.”

   The analysis firm predicted that the pay-TV industry’s key growth will be driven by the Asian-Pacific market, which is expected to add more than 27 million subscribers in 2012. The Asian-Pacific region is expected to see the strongest growth in digital TV subscriptions in 2012, as the on-going digitization process in countries such as India have been steadily increasing digital TV penetration.

   ABI Research Analyst Khin Sandi Lynn, however, said Asia’s pay-TV progress could be better. “The Indian government recently announced that it would not extend the deadline set for cable digitization of 12 million homes in the four major metro areas beyond October 31, 2012. We are skeptical that target will be reached as only 68 percent has been achieved so farm,” said Lynn. “Overall Asia-Pacific digital cable TV subscriber base is expected to reach 213 million by the end of 2012 – a 27 percent increase from 2011.”