On-demand TV revenues from movies and TV shows (except revenues from other sources including sports and SVOD packages) are expected to reach USD 6 billion in 2017, up from USD 3.9 billion in 2011 and USD 2.3 billion in 2007, according to a report by Digital TV Research.
It has been estimated that the United States will contribute USD 1.8 billion to the total revenue in 2017 or 30 percent of the global total, while it provided 46 percent of the total in 2007. From the additional USD 3.7 billion on-demand revenues to be between 2007 and 2017, USD 1.2 billion will come from the Asia-Pacific region. The United States alone will add USD 750 million, followed by China (USD 520 million) and Italy (USD 327 million).
The digital cable is expected to generate USD 2.74 billion in 2017, up from USD 1.61 billion recorded in 2011. The United States shall provide USD 944 million in 2017, with China being the second with USD 418 million. DTH/direct broadcast satellite (DBS) will remain the second-largest contributor, with USD 1.7 billion in 2017. IPTV on-demand revenues will overtake digital terrestrial transmission (DTT) in 2012 to become the third-largest on-demand revenues platform. IPTV on-demand revenues are poised to reach USD 946 million by 2017.
Indian STB Market to Grow Exponentially by 2017
Introduction of conditional access system (CAS), mandatory government rules and regulations, the popularity of DTH platforms, and declining prices of STBs are some of the factors that are affecting the Indian set-top box (STB) market. At present, out of the total pay-TV subscribers, 67.3 percent are cable TV-based followed by DTH and IPTV. With the government directing rules to completely digitize the entire pay-TV market by 2014, the demand for STBs is expected to increase exponentially.
According to the present market scenario, around 93.5 percent of the total cable TV subscribers are still on analog-based networks; however, a major shift toward a digital cable TV network is expected in the coming years. Also, with the introduction of high definition (HD) channels and smart TVs, the market for digital TV viewing is expected to increase significantly.
According to a 6Wresearch report, the Indian STB market is expected to ship 67.2 million units by 2017, registering a cumulative growth of 28.5 percent from 2012-17. The key or top players of the Indian STB market include Huawei, Pace, Cisco, Chang Hong, Skyworth, HUMAX, Technicolor, Echostar, MCBS, Indian Technologies, and Bharat Electronics.
Broadcasters to Triple OTT Revenues by 2017
Given the revenue opportunity of consumer electronics (CE) devices at present, OTT video service providers are keen to establish a strong presence on the variety of connected CE devices being installed in homes of consumers. In 2017, 27 percent of OTT video transactions will be initiated via fixed connected CE within the home, accounting for 46 percent of world OTT market revenues generated that year, according to an IMS Research.
As per the report, geographic expansion of large OTT portals including Amazon, Apple, and Netflix is one of the main drivers behind the growing adoption of OTT video via connected CE, both fixed in-home devices and portable CE such as tablets and smartphones. Furthermore, platforms such as UK's YouView and HbbTV in mainland Europe are enabling broadcasters and pay-TV operators to extend the reach of their existing video assets. The report forecasts that in 2017, broadcasters will account for 17 percent share of world OTT video market revenues, and pay-TV operators for 11 percent share.
It is also estimated that broadcasters will generate USD 1.8 billion in OTT market revenues in 2012, mostly through advertising, and will grow this to USD 5.9 billion in 2017. It states that over the next five years, more broadcasters will attempt to monetize back catalog content via the pay-per or subscription model, as well as look to international expansion as a means of generating OTT revenues.
Active DAS Equipment Market for In-building Wireless to Cross USD 1 Billion by 2013
Active distributed antenna systems (DAS) equipment revenues are estimated to cross USD 1 billion by 2013, according to a report by ABI Research. Active DAS equipment is mostly made up of headend and remote units, which are used to distribute cellular signals throughout a building. The global market for in-building wireless equipment is estimated to reach USD 2 billion by 2013, with active DAS contributing 50 percent of the total revenues. The other half includes passive DAS, repeaters, cabling, and antennas. The overall market for in-building wireless, which includes equipment and service revenues, also known as labor costs, is estimated to reach USD 3.6 billion by end 2013.
Active DAS equipment market has an overall CAGR of 15 percent, with the North American region being the strongest, where the market is growing at 20 percent annually. Passive DAS equipment revenue on the other hand is expected to show a modest CAGR of six percent in North America.
The market data mainly covers DAS and repeater equipment but does account for the impact of small cells on DAS systems. Small cells and DAS intersect mostly in small- and medium-sized buildings where small cells could be deployed independently in place of DAS, complement DAS as a hotpot fill-in, or more importantly, feed into DAS replacing the need for large expensive macro base stations, repeaters, or remote radio heads.
IPTV Operators Turning Up the Heat with Multi-screen TV, Content Discovery, and Social Networking
As the pay-TV industry becomes increasingly competitive, operators of managed IPTV services around the world are leveraging their IP networks to offer more advanced services including multi-screen TV, content discovery, and social networking, as per the new report from Infonetics Research.
Service providers currently providing IPTV network services to assess their needs and analyze trends in the IPTV market were interviewed. According to the report, operators who participated in the survey mostly deliver linear broadcast TV over a pure IP network and the majority of IPTV service providers do not currently support video streaming services like YouTube, Hulu, or Netlfix, although this is bound to change as they seek to assimilate the growing threat of over-the-top (OTT) services and bring them under their service portfolio. The data also reveals that only one-third of IPTV operators offer social networking capabilities for the TV. Subscription video-on-demand (S-VoD) turned out to be the revenue-generating model among VoD offerings. At present, 83 percent of respondents offer S-VoD for access to premium channels including HBO, Showtime, and Starz, and libraries of first-run movies, which is predicted to grow to 89 percent in 2013.
Global IPTV Subscribers to Triple by 2017
The number of homes paying for IPTV will shoot up to 165 million by the end of 2017, up from 51 million at the end of 2011 and from only 7.5 million at the end of 2007, according to a new report from Digital TV Research. The global IPTV forecasts report estimated that China will supply 77 million (47%) of the total in 2017, up from 14 million (28%) in 2011 and only 350,000 (5%) at the end of 2007.
Of the 114 million subscribers to be added between 2011 and 2017, 86 million will be from the Asia-Pacific region, around three-quarters of the new subscribers. India will supply 7.2 million more IPTV subscribers, up from a very low base at the end of 2011. Global IPTV penetration only reached 3.7 percent of TV households in 2011, although this was up from 0.6 percent in 2007. By 2017, IPTV penetration will be as high as 14 percent in the Asia-Pacific region by 2017 with Singapore (43%) being the first and Hong Kong (38%) to be the second.
IPTV revenues are estimated to rise to USD 21.3 billion in 2017 as compared to USD 9.7 billion in 2011 and USD 1.5 billion in 2007. The United States will remain the largest IPTV revenue earner by taking a third of the 2017 total (down from 41% in 2011). From the additional revenues to be created between 2011 and 2017 amounting to USD 11.6 billion, the United States will provide USD 3 billion. The Asia-Pacific region will contribute an extra USD 5 billion, led by China (USD 1.8 billion) and Japan (USD 1.6 billion).
Digital Media to Drive M&E Revenues through 2015
Global media and entertainment CEOs are optimistic about the digital future and digital revenue is expected to be a rapidly increasing percentage of overall revenues for companies, according to Ernst & Young's latest study. The report is the result of surveys conducted by Ernst & Young with 34 CEOs from global media and entertainment companies with combined annual revenues exceeding USD 300 billion. According to the report, around half of all global media and entertainment CEOs believe digital revenues will increase their overall revenues and margins by at least 10 percent within the next three years.
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