Changes in market conditions and consumer behavior are forcing dramatic shifts and an uncertain future for the pay-TV industry, according to a research report.
The Ovum report said the new technologies and players offering alternative ways to view video are undermining the established order of pay-TV operations.
The study also indicates that pay-TV subscriber growth is slowing in several markets, with free-to-air digital TV and web-based offerings luring consumers away from traditional pay-TV services.
“While these changes have already started to occur, their impact will become increasingly pronounced over the next five years. This will force a shift in the strategic approaches of pay-TV operators if they are to ensure their continued success and survival,” Jonathan Doran, Ovum principal analyst and author of the report, said.
The analyst added that “in isolation, none of the challenges faced by traditional pay-TV operators present an insurmountable barrier. Many operators have demonstrated their ability to fight back against these threats by rapidly adapting to the changing environment and turning challenges to their advantage. However, when combined, these disruptive factors represent an evolution in the TV market landscape that cannot be reversed.”