ABI Research: IPTV service market to exceed $40 billion by 2015

A new report says global pay-TV revenues increased 9 percent to nearly $58 billion in the second quarter of 2010 from the same period a year ago, and projected that IPTV service revenue alone could generate more than $40 billion by the end of 2015.

ABI Research, which yesterday released a report forecasting that the IPTV category would nearly double its market share to 11 percent of the pay-TV market by 2015, in its report today-Pay-TV ARPU and Revenues--said that continued subscriber growth would likely bring global IPTV service revenues to more than $40 billion at the end of 2015, with a CAGR approaching 20 percent from 2010 to 2015.

ABI said both cable and satellite revenue also would grow. In general, it said, growth across the pay-TV industry was due to programming packages, with higher prices and more advanced services such as High Definition programming.

"The increase in service revenue is driven by both increases in subscriber additions and average revenue per user," said research associate Khin Sandi Lynn. "Many of the satellite TV operators saw rises in ARPU due to their offers of HD programming packages. For example Direct TV ARPU increased from $83.16 in 2Q 2009 to $87.91 in 1Q 2010 as the result of the boost from higher-priced High Definition programming."

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