Will OTT Kill Pay-TV?

kill-tvAnalysts have been wondering if the availability of every-increasing free Over The Top television content from online sources will eventually kill the Pay TV industry… The answer is, “no”, at least not in the Western European Union.

According to a recent report by Analysis Mason research house as posted in Telecomms EMEA,Pay TV subscribers are set to grow from 9.2m to 113.3m over the next 5 years from 2013 to 2018. During this time period, OTT services will indeed grow faster, but only to approximately 5.6m users.

Cesar Bachelet, senior analyst at Analysis Mason, explains that users are unlikely to abandon pay-TV services for OTT equivalents, but notes the effect of OTT services will be most heavily felt on secondary TV sets.

IPTV users will grow from 6.2m to 27.6m and satellite users from 1.1m to 31.6m. Analog Cable subscribers will contract by 2.9m, from 46.5m down to 43.6m, while Direct to TV (DTT) users will drop by half a million users from 5.4m to 4.9m.


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