Revenues from pay TV services across North America will reach their peak next year and decline by over two billion dollars in the subsequent four years, according to new research.
Digital TV Research says that ARPU is falling as pay TV operators look to convert subs into triple play customers.
Cumulative pay TV revenues in NorthAmerica will peak at US$90.6 billion in 2013 before falling back to US$88.2 billion in 2017, the research says.
Report author Simon Murray said: “Pay TV penetration has almost reached saturation point in Canada and the US, so pay TV operators continue to fight between themselves (mainly to capture analog cable subs) for new subscribers.”
Despite the revenue decrease subscriber numbers will climb, Murray adds. Between 2011 and 2017 there will be 9 million overall additions, taking the North American pay TV total to 120 million.
The report also says that by platform, satellite will overtake cable as the largest revenue generator. DTH will bring in US$40.7 billion in 2017 and cable US$40 billion.