Piracy Impacts Pay TV Market Revenues
Pay TV is gaining in popularity, accelerated by the shift from analog cable TV networks to digital TV networks based on conditional access services (CAS). There has also been a move by governments to implement pay TV and the accompanying CAS system. To successfully capture the market, participants must rise above the issues caused by the long-standing problem of piracy.
New analysis from Frost & Sullivan (www.SmartCards.frost.com), World Pay TV Market, reveals that unit shipments in this market totaled $30 million in 2004 and projects to reach $63.8 million units in 2008.
If you are interested in an analysis which provides manufacturers, end users, and other industry participants with an overview, summary, challenges, and latest coverage of the World Pay TV Market -- then send an e-mail to Natalie Benavides -- North American Corporate Communications at natalie.benavides@frost.com with the following information: Full name, Company Name, Title, Contact Tel Number, Contact Fax Number, E-mail. Upon receipt of the above information, an overview will be e-mailed to you.
Spearheaded by hackers, piracy is a problem that is causing the revenue of pay TV participants to slide. Hackers violate security codes of conditional access modules to gain unlawful access to pay TV content. This content can further be displayed at any venue, including homes and pubs.
"This revenue loss faced by participants must be stemmed, considering the increasing need for average revenue per unit (ARPU) maximization," says Frost & Sullivan Research Analyst Karthik Nagarajan. "The trend to increase revenues from the existing subscriber base in certain developed markets of Western Europe compels better customer satisfaction with fewer hassles."
The dearth of legislative policies has fueled piracy and misuse in many Asian and European countries where, despite the introduction of CAS, there is a lack of legislative protection. This hinders the widespread implementation of pay TV. However, new technical innovations, such as the removable security module where the smart card will be independent of the set-top box, minimize the chances of piracy and tampering.
"Security modules can now be plugged into any set-top box with a common interface slot," explains Nagarajan. "Consumers will benefit enormously by this advancement, which allows wider choice from multiple brands of set-top boxes offering a range of features and functions."
In addition, it is vital that broadcasters forge effective alliances to accelerate revenue generation and work with governments to ease the delay in forming successful policies. For instance, football clubs have signed agreements to display zonal football matches in Italy for paid viewing. The smart card enables an impulsive 'pay per view' with easier availability at localized places.
This use of sports broadcasting can be extended to digital gaming services using a smart card authentication. Digital gaming is an expansive market -- growing in popularity amongst the youth -- which participants can successfully tap into if simpler adoption techniques are innovated.
Participants must also overcome the obstacles caused by free to air (FTA) digital services, which are encouraged by certain European governments favoring the free flow of information. Though pay TV operators usually offer prime content, the response to paid fare has only been tepid in parts of Europe.
"In fact, operators in many parts of Europe are compelled to carefully follow the market since FTA services are a constant threat -- as seen by the chaos arising from the introduction of paid content on Freeview in the United Kingdom by Top Up TV Limited," observes Nagarajan. "However, FTA has not heavily affected the majority of viewers excepting a minor percentage."
World Pay TV Market, part of the Smart Card Subscription, examines the global pay TV market, providing information on the various geographical segments. The research service also offers a comprehensive overview of market drivers and restraints and industry challenges to better enable participants to strategically capitalize on opportunities and increase market demand and share. Executive summaries and analyst interviews are available to the press.
Source: press release
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