Pay TV Market Size, Share & Trends Analysis Report By Technology (Cable TV, Satellite TV, IPTV), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global pay TV market size was valued at USD 230.68 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) exceeding 1.7% from 2021 to 2028. The emerging demand amongst consumers to leverage better quality content with high picture resolution is offering promising growth opportunities to the market. One of the primary growth drivers of the market is the ability to access high-quality content from different service providers on a single platform at affordable prices. Moreover, pay TV service providers now offer several value-added services such as customizable channel subscriptions, reduced subscription rates, internet connectivity, and bundled packages according to the users’ needs and demands, thus offering profit generation opportunities to service providers.

Service providers have started adopting integrated broadband broadcasting (IBB) systems to diversify their service offerings and facilitate better market penetration. The combination of broadcast and broadband technology has provided a potential advantage of delivering both efficient mass content delivery and personalized service. Moreover, the merger of Smart TV Alliance and HbbTV (Hybrid Broadcast Broadband TV) Association has enabled customers to view more TV applications along with enjoying better interactive experiences by accessing entertainment via their smart TVs or set-top-boxes. Additionally, smaller cable operators have started deploying HbbTV-based portals offering a wide variety of services on an HbbTV-equipped device.

The broadcasters have realized the importance of UHDTV services, which has enabled them to offer improved picture quality of the channels. The growing demand for UHD services is driven by the increased number of households with flat panel displays, able to present HD. Moreover, the pay TV provider investments in production lines and R&D are already sunk costs, and with the declining price levels, customers seem to be bound to adopt UHDTV services.

The widespread availability of broadband, high-speed internet, and powerful connected devices has enabled service providers to offer linear TV services and Video-on-Demand (VoD) anywhere and anytime. This has resulted in an emerging trend of downloading large videos such as specific TV shows or programs. Consumers are offered the ability to download choice content by pre-deciding the duration for content download and view these programs as and when needed, thus ensuring continual customer satisfaction and retention.

Technology Insights

The satellite TV segment captured the highest revenue share of 50.00% in 2020. The increasing demand for users to access newer networks, bonus features, and more modern channels are promoting service providers to diversify their service offerings. The current trend of experiencing live broadcasts of programs such as news and sporting events continues to offer a strong backbone to satellite TV adoption. Furthermore, increasing demand amongst users to experience high-quality viewing experiences such as 4K and Ultra HD (UHD) picture quality and the ability of satellite TV service providers to offer these services without bandwidth limitations is further encouraging the growth of the segment.

The cable TV segment also captured significant revenue share in 2020, owing to rising demands amongst customers to access and experience unbundled packages. Despite capturing a significant market share, the future doesn’t seem to be promising for cable TV providers. There is a growing number of cord-nevers who have decided to skip pay TV altogether. The problem being, an increased number of households have started getting access to videos through other platforms instead of traditional cable TV subscriptions. Moreover, prominent cable TV operators such as AT&T, Inc., Comcast Corporation, and DirecTV have witnessed a huge decline in the number of subscribers as they are switching to other media streaming platforms.

Regional Insights

North America dominated with a revenue share of 39.67% in 2020. Despite higher revenue share, the regional market is witnessing a decline owing to the rapid penetration of internet-enabled mediums and the advent of OTT platforms. The significant rise in instances of cord-cutting is urging service providers to shift its service offerings to online content delivery, to capture a higher market number of subscribers. Furthermore, the integration of advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML) to carefully analyze users’ viewing trends and offer customized suggestions is further contributing viewers to switch to OTT platforms. Additionally, lowering of profit margins in providing bundled packages over the years has resulted in service providers refraining from these business methodologies, thus impacting industry growth adversely.

The Asia Pacific region captured over 25% revenue share in 2020 by revenue. IPTV has been the primary growth driver for the region owing to the rapid adoption of the online subscription business model amongst users. Furthermore, the increasing penetration of pay TV in rural households in regions such as China, India, and Indonesia has resulted in overall industry growth. Additionally, new initiatives by federal organizations, such as Telecom Regulatory Authority of India (TRAI) in India, allows user to customize their choices and pay for channels according to their demands, which is further enabling wide-scale adoption of pay TV services in the country, thereby contributing to the regional growth.

Key Companies & Market Share Insights

DIRECTV, DISH Network Corporation, Carter Communications, Foxtel, and Comcast Corporation are some of the significant players in the pay TV industry space. Service providers have started offering several channels and covering telecasts of a higher number of live events, such as sporting events, thus getting a better opportunity to capture a higher market share. Furthermore, service providers have started offering consumer-specific social media applications, which allows users in a geographic region, with similar interests, to socialize and witness live sporting events together. For instance, DIRECTV has launched a mobile application for Android and iOS phones, which allows sports fans in a geographic region to interact and engage with one another, meet at pre-decided places, and experience live matches together. Some of the prominent players operating in the global pay TV market are:

• DIRECTV

• DISH Network Corporation

• Carter Communications

• Foxtel

• Comcast Corporation.

Pay TV Market Report Scope

Segments Covered in the Report

This report forecasts revenue growths at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018to 2028. For this study, Grand View Research has segmented the global pay TV market report based on technology and region:

• Technology Outlook (Subscribers, Million; Revenue, USD Billion, 2018 - 2028)

  • Cable TV

  • Satellite TV

  • Internet Protocol TV (IPTV)

• Regional Outlook (Subscribers, Million; Revenue, USD Billion, 2018 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • MEA