Increased demand for high quality content along with the increasing purchasing power of individuals has led to the growth of Pay TV market.
Covid-19 Impact & Market Status
The Pay TV market size increased immensely due to the advent of Covid-19. This is because of the travel restrictions, flight bans, and quarantines which further resulted in termination of all the offline activities and offices temporarily. These reasons made the usage of Pay TV must as people wanted a source of entertainment with the help of which they are able to reduce stress from the morbid conditions. Due to new Covid variant Omicron identified by scientists in South Africa market is experiencing the positive impact. This has led to the further adoption of the Pay TV market as working class was at home so they wanted something for relaxation. Due to the massive opportunities created by the Covid 19, many new start-ups are focusing on entering this market by bringing technological innovations.
This Pay TV Market report explores the current market, regulatory aspects, and potential opportunities, and challenges in individual market segments. The report also gives a detailed outlook of the competitive landscape.
Satellite TV to bring in most revenues
Based on technology type, the Satellite TV contributed to the highest market share, accounting for more than two-thirds of the global Pay TV market. This is because of the rise in demand for bonus features along with newer networks which have resulted in service providers expanding their offerings. Further, Satellites are capable of providing high-quality content, which, fulfils the demand for HD content thereby driving the segment growth.
Residential segment come out at top
The Residential segment has come out on top when we talk about the Pay TV market on the basis of application. This is because the residential demand is way higher than the commercial demand. It has also seen an upsurge in the market because the residential segment’s major demand in from developing countries wherein people are getting awareness about these forms of content consumption. The per capita income is also increasing and hence it is leading to the growth of residential space.
North American Region to Render Ample Investment Avenues
North America is the largest contributor to the growth of global Pay TV Market. The key factors such as a huge population with the per capita income to bear this expense of subscription-based TV, and a culture of people highly interested in entertainment are responsible for the growth. However, it is facing huge competition from the OTT players and there is a proliferation of these content giants in the region of North America.
Asia Pacific had more than 18% share in the market. IPTV is leading the region due to a rise in the adoption of online subscription models. Rising pay-TV penetration in countries such as China, Indonesia, and India promoting to regional growth. In India, the Telecom Regulatory Authority of India (TRAI) has allowed users to pay only for what they watch. This factor has further amplified regional growth.
The growth in entertainment industry, in addition to the increased range of exclusive content available has paved way for the Pay TV market to increase its revenue in the past years.
Owing to the deadly situation that Covid 19 created in the world, stress and anxiety was everywhere and hence people needed some sort of entertainment. This led to a massive jump in the Pay TV market because people were staying in homes. The younger generation has its preferences in terms of the content they watch and more and more discussions are around the same which has helped this industry boom.
Pay TV refers to the subscription-based television channels that are provided by various multi-channel operators. The growth of Pay TV market is because the channel providers wanted to increase their revenues. Earlier, revenue was based only on advertising and carriage fees but now monthly or annual subscription is the go-to mode. The Covid 19 virus has had an immense impact in the adoption of the Market. These factors collectively influence the global Pay TV market, ensuring an overall market size of 225 billion by 2028 with an annual growth rate of 1.5% through the forecast span.
The launch of new channels with content catering to every demographic segment has been a great driver of this market. For example, growth of Star, Sony because of the sports channels subscription that they provide. These channels often require seasonal subscriptions however, the packages are also available in case anyone wants to subscribe for longer period of time. As the resolutions of TVs are getting better, people want channels that are HD and provide an immersive experience.
Factors such as increase in adoption of Pay TV market due by households of almost every income group, word of mouth expansion by user generated subscriptions and subtle advertisements are other such ways through which this market is getting the growth.
However, the growth of OTT platforms like Netflix, Amazon Prime are posing a major threat to the Pay TV market as the younger generation often prefers OTT over Pay TV. This challenge is forcing the players in the Pay TV market to sustain their businesses by the means of Mergers & Acquisitions. Also, the increasing content consumption on mobile phones and laptops can also prove to be a huge threat to the market. Another challenge is the increased losses that the companies in this segment are bearing which is harming their businesses and not letting the companies invest in better technology.
The major players of this market are DirecTV (AT&T), Comcast Corporation, British Sky Broadcasting (Sky UK), Charter Communications, Inc., Foxtel, Airtel Digital TV, British Sky Broadcasting, Comcast Corporation, Dish Network Corporation, Fetch TV Pty Limited, Rostelecom PJSC, Spectrum TV, Tata Sky, Tricolor TV, and Videocon D2H. Fighting the ongoing wave of customer deviation from Pay TV to OTT can be a huge challenge for the companies in this market and one way out can be by the method of merging with the competitors. Getting better shows, movies and sports events covered can be a way by which this industry can grow at a better pace.
Latest Innovations in the Global Pay TV Market: A Snapshot
- Companies Discovery and BT Group said they were in exclusive discussions about forming a partnership. The potential deal would see BT Sport, rights holder of Premier League and Champions League matches as well as many other top sports competitions, link up with Discovery-owned Eurosport UK in a 50-50 venture.
- FuelMedia TV is launching its place-based, digital-out-of-home (DOOH) media network through a strategic agreement with Invenco, a global provider of secure payment processing and customer engagement products and services. Under this agreement, FuelMedia TV provides DOOH media services for Invenco’s outdoor payment terminals installed in fuel and convenience customer locations in North America. This way both the parties benefit mutually from the deal.
Pay TV Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 225 billion|
|Growth Rate||CAGR of 1.5% during 2021-2028|
|Segment Covered||Technology,, By Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||DirecTV (AT&T), Comcast Corporation, British Sky Broadcasting (Sky UK), Charter Communications, Inc., Foxtel, Airtel Digital TV, British Sky Broadcasting, Comcast Corporation, Dish Network Corporation, Fetch TV Pty Limited, Rostelecom PJSC, Spectrum TV, Tata Sky, Tricolor TV, and Videocon D2H.|
Key Segments of the Pay TV Market
Pay TV Market on the basis of Technology, 2018-2028 (USD Million)
- Cable TV
- Satellite TV
Application Overview, 2018-2028 (USD Million)
Regional Overview, 2018-2028 (USD Million)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa