ABI: Multiplay bundles drive $53B in pay TV service revenue

Cable and telco moves to offer competitively priced double, triple and quad-play bundles are driving up pay-TV subscriber numbers and revenues. A new ABI Research report revealed that bundled service packages provide a more cost effective option for consumers over purchasing each service separately and their uptake has driven up Q1 TV service revenues 10 percent year on year to $53 billion.

Many service providers have noted how selling triple-play service packages have become a churn reducer and have increased customer ARPU for various subscription-based TV packages.

AT&T (NYSE: T), for instance, reported that at the end of Q1 2011 that more than three-fourths of AT&T U-verse TV subscribers subscribe to a triple- or quad-play option with U-verse triple-play package. Customer ARPU increased 14.3 percent year over year to $168.

On a regional basis, North America and Western Europe hold the highest market share of pay TV revenue, a factor ABI attributes to the high ARPU in these regions. Not far behind is Asia Pacific, particularly China and India, which will surpass Western Europe by 2013 with higher potential ARPU as more consumers migrate to digital video services.  

For more:
- see the release

Related articles:
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AT&T's De La Vega: U-verse bundles continue to drive wireline growth
AT&T wireline results in Q1 reflect strong returns on consumer broadband, IP business services

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