Pay TV: Brazil Most Dynamic, UK Peaking

According to two separate reports from Digital TV Research, Brazil is the world's most dynamic pay TV market, and the UK is approaching its peak. Brazilian DTH subscriptions overhauled cable as the most popular platform during the first six months of 2011, th...

According to two separate reports from Digital TV Research, Brazil is the world's most dynamic pay TV market, and the UK is approaching its peak.

Brazilian DTH subscriptions overhauled cable as the most popular platform during the first six months of 2011, the report said, with further change ahead as the government plans to amend legislation to allow telcos to offer full IPTV services. The report predicts that pay TV penetration will reach 35% of TV households by 2016, double the end-2010 figure, for a total of 22.2 million subscribers compared with 9.77 million at end-2010. Pay TV revenues are expected to total $6.64 billion in 2016, more than triple the 2010 figure.

In the UK, pay TV revenues are reaching maturity, the research house said. UK pay TV revenues are forecast to reach $9.3 billion in 2011, up by $3.3 billion on 2006. However, revenues are only expected to climb by another $250 million to reach $9.6 billion in 2016. The report forecasts that TV ARPU will fall as operators convert subs to bundles and as competition from free multichannel services intensifies. Digital TV penetration exceeds 95%, largely because of free-to-air services. Digital pay TV penetration is expected to remain below 58% of TV households.
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