Cord Cutting: No Impact Yet

The North American digital TV (DTV) market is continuing on a growth trajectory despite continued talk of cord cutting, according to the latest research from Strategy Analytics. Digital subscriptions are expected to increase from 114 million in 2011 to 129 million in 2016, implying a five-year CAGR of 2.36%.

Cord cutting has yet to make an impact on North American pay TV. The mix of DTV subscribers has changed over the past few years, but the total subscriber base continues to increase. Overall, the cable market is expected to see a decline in subscribers; however, digital cable subscribers, which totaled 49 million in 2011, are expected to grow to nearly 54 million by 2016. Digital satellite and IPTV services are expected to benefit from the changing market, with IPTV growing from 8 million subscribers in 2011 to 20 million in 2016.

"Cord cutting could still have an impact on the pay TV market, so we keep a close eye on the trends and activities of pay TV consumers," said Jason Blackwell, director of service provider strategies at Strategy Analytics. "However, without a competitive level of content, alternative services have yet to offer a compelling alternative to the traditional pay TV channel lineup."
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