According to new figures from Digital TV Research, revenues will reach US$26 billion by the midpoint of the decade, down from their peak of US$112 billion in 2015.
The report notes that revenues will drop across the board. Cable revenues will decline by US$22 billion – US$3 billion less from analogue cable and US$19 billion lower for digital cable. Satellite TV will fall by US$21 billion while IPTV will drop by US$7 billion.
Simon Murray, principal analyst at Digital TV Research, said: “The loss of 42 million pay TV subscribers between 2010 and 2025 is mostly responsible for this decline. Operators now put more emphasis on broadband connections than on traditional pay TV channels.
“Subscribers are turning against high traditional pay TV fees by seeking cheaper alternatives. OTT allows viewers to see what they want when they want – they are not tied to the channels’ schedules. The value of the linear schedule for recorded programming is rapidly diminishing.”
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