Additional visuals and statistics on the North American research of the Pay-TV Innovation Forum, a program that explores the next generation business and technology developments of pay-TV operators around the world to uncover and understand what will drive the next phase of growth in the industry. For more information on the program and findings from the first year of research, please visit https://dtv.nagra.com/paytvif.

1. 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

2. 1
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

3. 2
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)

4. 3
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

5. 4
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

6. 5
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

7. 6
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