Verizon leads IPTV operator market with highest service revenue

Telecom Lead Asia: In the global IPTV sector, Verizon is the top ranked IPTV operator with the highest service revenue.

Recently, reported that Verizon’s ARPU from FiOS customers was more than $150. FiOS services produced about 68 percent of consumer wireline revenues in fourth-quarter 2012. About two-thirds of FiOS consumer customers have purchased a “triple play” of phone, Internet and video services.

In Fourth-quarter 2012 operating revenues of Verizon’s wireline business were $10.0 billion, down 1.5 percent compared with fourth-quarter 2011.  Consumer revenues grew 4.1 percent compared with fourth-quarter 2011.

Consumer ARPU for wireline services increased to $105.63 in fourth-quarter 2012, up 9.5 percent compared with fourth-quarter 2011.

ABI Research says the Pay-TV market generated $238 billion revenue in 2012 against $223 billion in 2011.

The global Pay-TV market is expected to generate $304 billion in 2018 with a CAGR of 4 percent.

Service revenue growth in the Asia-Pacific region was due to increase in subscriptions. However, cable TV operators in North America are experiencing a decline in service revenue as result of a contracting subscriber base, despite cable TV innovations such as DVR and HDTV.

Globally, IPTV is gaining market share year-over-year while the rest of the Pay-TV platforms are slowly contracting.

IPTV service revenue market share increased from 10 percent in 2011 to 11.5 percent in 2012.

Cable TV market share dropped to 47 percent in 2012 from 48.5 percent in 2011 while satellite TV market share dropped around 1 percent.

Jake Saunders, VP and practice director of core forecasting, says availability of super-fast broadband networks and bundle offers from telcos over high-speed networks are driving the growth of IPTV adoption. IPTV market share is expected to increase to 18 percent in 2018, to generate $53 billion in revenue.

Based on ABI Research’s global Pay-TV market share analysis, satellite giant DirecTV ranks top in terms of Pay-TV service revenue across all platforms.

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