The recent distribution deal between Disney and Charter in the U.S. offers a framework for traditional cable TV companies to transition their business into a streaming aggregation play and stabilise subscriber trajectories. That is according to Ampere Analysis.
The analyst firm has just released forecasts that global Pay TV penetration will fall for the first time next year (see separate story). In North America, Pay TV penetration has almost halved since 2009 due to high costs and SVOD competition, the firm notes.
However, annual North American Pay TV ARPU will still measure over $1,100, and Rory Gooderick, Senior Analyst at Ampere Analysis points out that, “cable and satellite platforms will remain a powerful force in the TV world.” He adds: “They are important distribution partners for streaming products, as evidenced by the Disney and Charter deal, which saw select Disney streaming services bundled into Charter’s TV packages.
“This package structure, already increasingly common in Europe and parts of Asia, offers a framework for traditional cable TV companies to transition their business into a streaming aggregation play, and stabilise subscriber trajectories."