Satellite (paid) TV (world market)

2016: The American market of paid TV was reduced by 1.7% in a year

According to the main players of the market of paid TV in the USA at the end of 2016 the market was reduced by 1.7% in a year - it is the most noticeable decrease for all history. Acceleration of decrease in the last quarter of last year also was the greatest,^[1] with reference to the analyst Moffet Natanson reports.

These data do not consider an effect of start of OTT platforms, such as Sling TV and DirecTV Now provoking failure of users from traditional TV yet.

Analysts note concern of market participants in a trend of transition from traditional radio TV to video on demand, movable at the expense of low prices and targeted offers. On the basis of it in the future predict accurate differentiation – the leading role will be played by owners of content whereas the rest gets repeated broadcastings and less popular video.

2014 and the forecast for 2019

The world subscriber base of a pay TV can grow to 1.1 billion subscribers by 2019 whereas by the end of 2014 it makes more than 920 million subscribers, analysts of ABI Research company consider. According to experts, the volume of the world market of paid TV by 2019 will increase to $323 billion from $269 billion predicted for the end of 2014^[2].

At the end of 2014, as expected, the indicator of ARPU - in connection with the growing price competition will a little decrease, but rates of its decrease will be lower, than in 2013. As consider in ABI Research, deceleration is promoted by the growing number of subscribers to HD services and also important sports events, such as FIFA World Cup of this year.

In particular, the company notes, the American operator of satellite television DirecTV in the second quarter added this year to himself 543 thousand subscribers in Latin America. It was significant growth if to consider that during the same period of 2013 the company in this region gained 165 thousand subscribers. ARPU in local currency grew by 8% in comparison with the second quarter 2013. Growth of indicators in the Latin American region substantially was promoted by the FIFA World Cup which took place in Brazil. At the same time DirecTV did not get big profit, having lost 39 thousand subscribers in the USA.

Researchers also note rapid progress of a segment of IPTV though its share in total market of paid TV grew only by 1% in the second quarter 2014 in comparison with the same period of 2013. However, according to analysts, IPTV and online video services promote gain of the competition in total market of paid TV.

For example, the Japanese satellite operator Sky Perfect lost more than 200 thousand subscribers who passed to alternative platforms according to the results of last year. To cope with leakage of subscribers and to save revenue, Sky Perfect began to enter VOD services which give to clients access to video content through different devices, including smartphones and tablets. By the end of the first quarter of this year 126 thousand clients of provider were signed for VOD services.

Thus, it is possible to draw a conclusion that multiscreen services help operators of paid TV to cope with loss of subscribers and to support profit, note in ABI Research.

2011

At the end of 2011 the volume of the world market of satellite TV was $90 billion. By 2021 this indicator can increase to $150 billion. A main growth driver of the market are developing countries.

According to analytical center Euroconsult, the size of the market of the industry of a pay satellite TV in 2011 was $90 billion that for $11 billion it is more, than in 2010. According to forecasts of analysts, in 2021 this indicator will increase up to $150 billion. At the same time the share of emerging markets of Latin America, Central Europe, Russia, the Middle East, Africa and Asia will constantly grow and by 2021 will make 44%.

The most fast-growing region on number of connections thanks to India is Asia. According to forecasts of Euroconsult, in 2021 77% of subscribers of satellite television will be in developing countries while in 2011 their share makes 60%.

"Growth of a subscriber base will be provided at the expense of developing countries while mature markets will focus on increase in profitability, - the CEO of Euroconsult considers Pacome Revillon. - Many platforms were started within the last 5 years that means that now they should begin to make profit. Otherwise, some of mature platforms are waited by merge".

For the end of 2011 in the world there were 137 platforms of paid satellite TV which provided broadcasting of 19,650 television channels for 184 million subscribers. The number of the broadcast channels in the HD format exceeded 2800, at the same time 600 of them was started in 2011 Software to forecasts of Euroconsult, HDTV and new formats (3DTV and Ultra HD) will actively develop in the next decade.

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