NEW YORK, USA: Worldwide revenue derived by service providers and cable companies for IPTV, cable video, and satellite video services is forecast to top $250 billion in 2014.

This is according to Infonetics Research's first edition of its 2010 biannual 'Video Services and Subscribers' report, which tracks telco Internet protocol television (IPTV), cable video, and satellite video services and subscribers.

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Average revenue per user (ARPU) for telco IPTV services in most regions remains lower than ARPU for cable and satellite services.

Jeff Heynen, directing analyst, broadband and IPTV, Infonetics Research. said: "Increased competition among video service operators will help keep monthly subscription fees in check, which will offset some of the growth expected from incremental revenue via video on demand, digital video recording, and 'start-over' services."

Still, telco IPTV service revenue is forecast to grow nicely over the next five years, good news for service providers trying to stem the loss of revenue from decreasing fixed access lines.

"However, the biggest threat to revenue growth is the continued rise of online (over-the-top) viewing, where users can simply eliminate their monthly TV subscription in favour of streamed programming delivered over the Internet via sites like Hulu and YouTube, and aggregating by services such as Boxee," notes Heymen.

Operators such as AT&T, Verizon, Belgacom, Deutsche Telekom, Orange, Iliad, and China Telecom are adding video subscribers at a rapid clip, selling them on a combination of exclusive content, higher picture quality, and introductory rates that are below similar offerings from cable and satellite service providers.
 
In North America, the top two providers of video services in terms of annual revenue are Comcast and DirecTV.
 
In EMEA, Sky is the revenue share leader by far, with its presence in the UK, Ireland, Germany, Italy, and Austria.