Telcos and cable operators are investing heavily in their networks to upgrade their subscribers to bundles (triple-play or double-play). These operators will reap the rewards of this investment as total subscription revenues (pay TV (including on-demand), broadband and fixed-line telephony) will increase by 65 per cent fr0m $124 billion in 2012 to $205 billion in 2018, according to the Triple-Play Forecasts report fr0m Digital TV Research.
Covering 97 countries, triple-play subscription revenues will reach $144 billion in 2018, up by $80 billion on the 2012 total. Triple-play revenues will command 70 per cent of total subscription revenues by 2018, up fr0m 52 per cent in 2012 and 36 per cent in 2008.
The US ($60 billion – double the 2012 total) will account for 42 per cent of the world’s triple-play revenues by 2018, although this is down fr0m a 59 per cent share in 2008.
Simon Murray, Principal Analyst at Digital TV Research, said: “Triple-play revenues overtook standalone TV revenues in 2009. Standalone TV revenues will start falling fr0m 2013 as subscribers defect to bundles and as cable and DSL/fibre operators offer lower-priced packages due to greater competition fr0m other platforms.”
Triple-play subscriptions will reach 333 million by 2018; up by more than 300 million since 2008 and up by 239 million on the 2012 total. China will have 115 million triple-play subscribers by 2018 (with only 9 million recorded at end-2012) – or 34 per cent of the global total.
The number of triple-play households will overtake the standalone TV total in 2016. The standalone TV total will begin to decline fr0m 2016 as more and more homes convert to bundles.
About 21 per cent of the world’s TV households (covering 97 countries) will subscribe to triple-play services by 2018. This is up fr0m just 7 per cent penetration at end-2012 and only 2 per cent at end-2008.
Despite rapid growth in IPTV subscriptions, cable will contribute nearly two-thirds of triple-play subscribers by 2018. Triple-play penetration will remain a lot higher in DSL and fibre homes (71 per cent by 2018) than in cable homes (42 per cent). However, the DSL and fiber proportion will not grow by too much, whereas the cable proportion will double fr0m 18 per cent in 2012.