Pay-TV operator revenues predicted flat to 2020, multiscreen services the path to growth

By jimoneill

According to a new report from TDG, The Future of TV Monetization, total TV and video revenue over the next five years will be running primarily flat.

“Overall TV and video spending has seen minor growth since 2004, rising from $195 billion (2013 dollars) to $213 billion in 2013. This constitutes an increase of only 9% during a 10-year period, equivalent to a compound annual growth rate (CAGR) of only +1%.”

Last year, TDG and iStreamPlanet teamed up on research that explored the value of multiscreen services to consumers. That report, Multiscreen Live Linear TV Everywhere: High Consumer Value, High Revenue Potential for MVPDs and Cable Networks, uncovered the high value that consumers place on multiscreen video services, or true TV Everywhere.

For example, 75% of respondents say they are very likely to use a multiscreen live linear service if it were offered by their provider.

But most importantly, half of pay TV subscribers said they are willing to pay $10/month for multiscreen, live linear access.

Running some quick math on this, if the largest MVPD with 22 million subscribers were to convert just the 18% of subscribers who say they would definitely sign up for $5 per month that would amount to over $240 million in additional revenue.

This was research we conducted over a year ago, we can assume that as mobile video viewing continues to grow that the demand for multiscreen services will grow as well, and these numbers will get bigger. Pay TV operators who are not planning to make big moves to capture this additional revenue will not only continue on the pace of flat growth, according to our research they will lose subscribers.

75% of survey respondents said they would likely switch providers based on the availability of multiscreen services.

True TV Everywhere, multiscreen services are the path to increasing Pay TV operator revenue, and holding onto subscribers.

Jennifer Baisch is vice president of marketing for iStreamPlanet.

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