The worldwide pay TV market is set to reach revenues of US$295 billion in 2022 as operators react to changes in the market by incorporating OTT offerings as part of their service line-ups, according to ABI Research.
The report cited DirecTV Now and Dish Network’s Sling TV as examples of the kind of video streaming services that are now being provided by pay TV operators, and said that operators like Com Hem are also starting to deploy Android-based boxes to provide OTT services together with traditional TV platforms.
“OTT is becoming a preferred video viewing platform due to its low-cost and availability on multiple devices without a long-term contract requirement,” said Khin Sandi Lynn, industry analyst at ABI Research.
Markets like North America and Europe are likely to see “a slight decline or sluggish growth” in pay TV in the coming years, according to ABI. It said that last year, traditional pay TV services in North America lost more than 3 million subscribers, mainly due to customers switching from satellite, cable, or IPTV services to video streaming services.
However, ABI expects the pay TV market to grow in developing markets in the years to come, with Asia Pacific’s total subscriber base climbing 7% year-on-year in 2017 to reach 656 million.