Global pay TV revenues crawl to $200 billion

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1 Global pay TV revenues crawl to $200 billion Based on forecasts for 80 countries, pay TV revenues will climb to US$200 billion in 2017, up by US$23 billion on 2011 but up by only US$2 billion (1%) on 2016, according to a new report from Digital TV Research. The forecasts are based on subscription and on-demand revenues. The Digital TV World Revenue Forecasts report concludes that DTH (DBS) revenues will overtake cable TV revenues in DTH revenues will reach US$91 billion in 2017, up from US$76 billion in Simon Murray, report author, said: Brazil will add the most DTH revenues [US$3.86 billion] between 2011 and 2017 nearly doubling its total in the process. The US will grow by US$3.1 billion, meaning that Brazil and the US will contribute nearly half of the extra revenues. He continued: However, DTH revenues will decline for 17 countries between 2011 and Much of this is due to greater competition forcing down ARPUs. Furthermore, low-cost DTH packages are making a significant impact in several countries. Cable TV revenues will begin to slide in 2014, with revenues falling by US$3.2 billion between 2011 and 2017 to US$85 billion. However, cable operators will gain extra revenues by converting subscribers to bundles. Digital cable TV revenues will climb from US$62 billion in 2011 to US$81 billion in 2017 (up by 32%) a faster increase than DTH. China will add US$4.1 billion in digital cable TV revenues over this period, followed by Japan with an extra US$3.6 billion. Digital cable TV revenues will fall by US$1.1 billion in the US over the same period. In fact, digital cable TV revenues will drop for 12 countries. Analog cable TV revenues will decline by US$23 billion between 2011 and 2017 to only US$4.1 billion in India will account for half of the remaining 2017 total. IPTV revenues will climb to US$21.3 billion in 2017, up from US$9.7 billion in The US will remain the largest IPTV revenue earner by taking a third of the 2017 total. Despite being relative newcomers, Fios TV and U-Verse, in particular, have made impressive subscriber gains in the US mainly at the expense of the cable operators, due to aggressive pricing campaigns. Global pay TV revenues will only grow by 13.5% between 2011 and Revenues will fall in North America and will only grow by 3.5% in Western Europe. However, Latin America will enjoy a 57.5% increase, followed by Eastern Europe (48.5%) and Asia Pacific (40.1%).

2 The US will remain the world s largest pay TV revenue earner by some distance. However, its revenues will fall by US$1.2 billion between 2011 and 2017 as homes convert to bundles and as competition forces down prices. On the other hand, Brazil s revenues will double over the same period (adding US$4.8 billion), with India (up US$3.2 billion) also enjoying impressive growth. Top 10 digital TV revenue countries in 2017 (US$ million) USA Japan 51,634 81,040 Brazil China UK Canada 4,571 4,766 4,835 7,052 7,209 8,412 9,711 10,100 10,600 India Germany France Mexico Others Source: Digital TV Research Ltd

3 Digital TV World Revenue Forecasts: Table of Contents Published in July 2012, this 200-page electronically-delivered report comes in two parts: A 112-page PDF giving a global Executive Summary, Comparison Tables and Country Forecasts (80 territories - please see next page for line-byline detail of what is included for each country). An excel workbook providing relevant background data for each country, so that the reader can drill down for detail at operator level.

4 Countries covered: Executive summary Algeria Angola Argentina Australia Austria Bahrain Belgium Brazil Bulgaria Canada Chile China Colombia Cote D Ivoire Croatia Cyprus Czech Rep. Denmark Egypt Estonia Finland France Germany Ghana Greece Hong Kong Hungary India Indonesia Ireland Israel Italy Japan Jordan Kenya Kuwait Latvia Lebanon Lithuania Malaysia Mexico Morocco Netherlands New Zealand Nigeria Norway Oman Pakistan Peru Philippines Poland Portugal Puerto Rico Qatar Romania Russia Saudi Arabia Serbia Singapore Slovakia Slovenia South Africa South Korea Spain Sweden Switzerland Syria Taiwan Tanzania Thailand Tunisia Turkey Uganda UAE UK Ukraine USA Venezuela Vietnam Zambia

5 Forecasts ( ) contain the following detail for each country: Stand-alone digital cable revs Digital cable TV subs revenues Analog cable TV subs revs Dual-play digital cable TV revenues Digital cable TV on-demand revs Cable TV revenues Triple-play digital cable TV revenues Digital cable TV revenues Stand-alone IPTV revenues Dual-play IPTV revenues Triple-play IPTV revenues IPTV subscription revenues IPTV on-demand revenues IPTV revenues DTH subscription revenues DTH on-demand revenues DTH revenues DTT subscription revs DTT on-demand revenues DTT revenues Subscription revenues On-demand revenues Total revenues Average Revenue Per User (US$) Stand-alone digital cable subs Average digital cable (subs & VOD) Dual-play digital cable TV subs Analog cable TV subs Triple-play digital cable TV subs Stand-alone IPARPU TV subs Dual-play IPTV subs Triple-play IPTV subs Average IPTV (subs and VOD) Pay DTH (subs) Pay DTH (subs and PPV) Pay DTT (subs) Pay DTT (subs and PPV) Average monthly ARPU

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