Pay TV Market Analysis Report By Technology, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global pay-TV market size was accounted for USD 225.9 billion in 2019, growing at over 1.5% CAGR over the forecast period, 2020 to 2027. With the technical advancements, there has been the integration of predictive analytics solutions that have led to a rise in the popularity of Over-The-Top (OTT). Owing to these advancements, pay-TV service providers have diversified their offerings. Various offerings include cost-effective internet connectivity, subscription rates at lower costs, and customized channels. In addition, service providers are offering bundled packages with omnichannel accessibility. These factors have resulted in a rise in the penetration of pay-TV services across different age groups.

Considering the increasing penetration of pay-TV services, the adoption of Integrated Broadband Broadcasting (IBB) is gaining traction among service providers. Both broadband and broadcast technologies have made it easier to deliver personalized services and mass content. Moreover, the increasing penetration of smart TV has further bolstered market growth.

UHD TV helps broadcasters in offering quality services, thereby, gaining traction. Further, an increased number of houses having flat panel displays bolsters UHD penetration. With the declining prices, pay-TV providers have reduced their spending on research and development. This has led to a rise in the adoption of UHDTV services.

Owing to the increasing broadband penetration and high-speed internet connectivity, service providers are increasingly offering Video-on-Demand (VoD) and linear television services. This has led to increasing download activities of large video files like television programs. Customers also get flexibility concerning the time of download.

Technology Insights

By technology, the satellite TV category held the largest revenue in 2019. In addition, the rise in demand for bonus features and newer networks have resulted in service providers increasing their offerings. Further, the demand for high-quality content has increased in the recent past. Satellites are capable of offering high-quality content, which, in turn, drives the segment growth.

On the other hand, in 2019, the cable TV category also held a significant share in the market. This demand is influenced by the increasing preference for unbundled packages from consumers. Despite the growth, the future seems bleak for cable TV providers. A large number of cord-nevers are increasingly opting for other services than pay-TV. In addition, major TV operators such as Comcast Corporation, DirectTV, and AT&T Inc. have witnessed a significant reduction in their user base in the past few years.

Regional Insights

In 2019, North America held the largest share in the market by revenue. However, the region is witnessing a decline owing to the increasing number of OTT platforms and internet-based entertainment. Increasing integration of machine learning and artificial intelligence is further encouraging users to switch to other platforms such as OTT platforms. In addition, service providers are forced to offer bundled packages at low cost, which, in turn, hampering their revenue.

On the other hand, in 2019, Asia Pacific accounted for more than 18% share in the market. IPTV is dominating the region owing to a rise in the adoption of online subscription models. Rising pay-TV penetration in countries such as China, Indonesia, and India is attributing 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 bolstered regional growth.

Impact of COVID-19

The outbreak of COVID-19 has positively affected the pay-TV market. TV viewership has increased considerably in the times of COVID-19.  News viewing and children's channels are dominating the current trend. The pandemic has forced people to stay home, which has led to a rise in TV viewership. As a large number of people are staying at home, it is expected that there would be certainly delayed in cord-cutting phenomena. However, the growth in pay-TV viewership is projected to be for the short term only, and with the increasing streaming industry, there would be a significant decline in pay-TV viewership.

Pay-TV Market Share Insights

Key service providers in the market are Foxtel, Comcast Corporation, DISH Network Corporation, and DIRECTV. Service providers are aiming to offers customized content and a higher number of live telecasts. Live streaming of sporting events offers a lucrative opportunity for the market players to increase their user base. For example, DIRECTV has introduced a mobile application for iOS and Android. This application helps sports enthusiasts in better engagement with each other.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2020 to 2027. For this study, Million Insights has segmented the global pay-TV market report based on technology and region:

• Technology Outlook (Subscribers, Million; Revenue, USD Billion, 2016 - 2027)
    • Cable TV
    • Satellite TV
    • Internet Protocol TV (IPTV)

• Regional Outlook (Subscribers, Million; Revenue, USD Billion, 2016 - 2027)
    • North America
        • U.S.
        • Canada
    • Europe
        • Germany
        • U.K.
    • the Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • MEA