According to IDATE’s latest World TV & New Video Services Market study, pay TV revenue will grow by 22.7% between 2012-17 to reach €210.2 billion, representing an average annual growth rate of 4.2%. Advertising revenue will see even stronger growth, according to the group, rising by 25.8% to reach €191.4 billion. The group estimates that public service broadcasting licence fee income will grow by about 7.5% to reach €37 billion.
In terms of the mix of services, linear TV will continue to generate 91% of income, according to IDATE. Video-on-demand will represent 7% of the total video market by 2017, with physical format video representing 2.1%. Total VOD revenues will amount to €34 billion, with OTT services representing 74% of the total. Within managed networks, transactional VOD will predominate, turning over €6.6 billion in revenues compared with €2.2 billion for SVOD, according to IDATE. Physical format video sales, mostly Blu-ray, will deliver revenues of €10.3 billion by 2017.
According to IDATE, TV households will reach 1.647 billion by 2017, up 9.9% on the 2012 figure, with digital homes representing 87.6% of the total.
Cable will remain the dominant distribution choice, with 571.7 million homes, but satellite and IPTV will gain ground, representing 32.4% and 8.5% of total households respectively by 2017. Terrestrial TV will decline to number three spot with a 24.4% share, according to the research group.