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Client
logo
April 2017│ Contact: jon.watts@mtmlondon.com │ Tel: +44 (0) 20 7395 7510
Pay TV Innovation Forum 2017
Key trends and developments in North America

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Globally, pay-TV service providers face a more challenging
market environment
Key trends and developments
Pay-TV service providersNew OTT
entrants
Telco entrants
Free content Direct to
consumer
Growth of broadband penetration
and speed
Advances in delivery technology (e.g. cloud, virtualisation)
Free-to-air TV
Challenging macroeconomic
conditions

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Pay-TV subscriptions are under growing pressure in the USA –
as alternative options proliferate
Pay-TV penetration in the USA
Pay-TV providers are still
making money – but their
margins are shrinking. Telcos
and SVOD services have
entered the market, offering
slimmer packages but at a
much lower price point.
87% 86% 84% 83% 82%
2012 2013 2014 2015 2016
Key trends and developments
Source: Leichtman Research Group (2016); Ofcom, International Communications Market Report (2011-2016)

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In the USA, many industry participants believe that the new
wave of low-cost OTT packages will transform the market
The US market is ripe for disruption
by low-cost competitors – we are
seeing this from players like Hulu
and Amazon – and the big players
are fighting back, with services like
DirecTV Now. It could be hugely
disruptive, as consumers gain
more choice at lower prices.
Key trends and developments

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Around the world, pay-TV providers are investing to develop
and extend their product and service portfolios
Key trends and developments
Portfolio scores by region (2016/2017, weighted average)
Source: MTM analysis of pay-TV service provider portfolios in Asia Pacific (n = 64), EMEA (n = 100), Latin America (n = 40), and North America (n = 16), covering 42 countries, like-for-like
No. of major
operators
16 100 64 40
North America EMEA Asia Pacific Latin America
2016
Change in 2017
Each pay-TV provider is scored in three product areas (i.e. TV platform,
online services and adjacencies) based on how advanced their portfolio
of products is: higher scores = more advanced features available

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North American pay-TV providers are the most advanced in
rolling out advanced set-top boxes
Key trends and developments
% of pay-TV operators offering (March 2017):
Source: MTM analysis of pay-TV service provider portfolios in Asia Pacific, EMEA, Latin America, and North America (n = 233, 42 countries)
84%
82%
45%
21%
21%
6%
3%
100%
100%
80%
55%
30%
15%
0%
78%
80%
22%
15%
2%
0%
0%
Global
North America
Latin America

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Across the Americas, pay-TV operators are advanced in
offering TV everywhere offerings – but other categories are
less well developed
Key trends and developments
% of pay-TV operators offering (March 2017):
Source: MTM analysis of pay-TV service provider portfolios in Asia Pacific, EMEA, Latin America, and North America (n = 233, 42 countries)
83%
30%
3%
100%
30%
5%
78%
22%
0%
TV Everywhere Standalone OTT App-based pay-TV
Global
North America
Latin America