UK pay TV revenue to climb to $8.2 billion by 2014

UK pay-TV revenue is set to climb to $8.2 billion by 2014, from $6.2 billion in 2009 as IPTV grows at an impressive rate of 26% within the forecast period, according to the latest report from Pyramid Research.

The UK communications market is one of Europe’s largest and most dynamic markets, expected to generate $47.1 million in revenue for 2009. Like most mature European markets, the major sources of growth, in absolute revenue terms, are mobile data and fixed broadband, noted Andrei Tchadliev, analyst at Pyramid Research and author of the report.

“However, it is expected that IPTV revenue will grow at a CAGR of 26% from $75 million in 2009, to $237 million in 2014, while triple play packages surpass double play, both contributing to the overall growth in the pay TV market.

“The pay TV market remains dominated by satellite provider Sky with close to 9.9 million subscriptions estimated for 2009, while IPTV remains concentrated to a small share of the market with only 4% of total pay TV households choosing the service,” Tchadliev said.

The breakup of Sky’s market control over exclusive sporting events, notably football and premier entertainment content, will likely result in an increase in the share of cable and IPTV as a percentage of pay TV households.

Tchadliev added that growth in pay TV services will also be boosted by the growing popularity of multiplay packages on account of cost. “We believe that by 2013, triple play services, namely fixed voice, broadband, and pay TV, will overtake double play,” he said. “It is estimated that in 2009, close to 19.4 million households will have signed up for triple-play services, largely on account of the value the offer over stand alone internet, voice, mobile, and pay TV packages.”

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