The global pay TV market size was valued at USD 210.99 billion in 2016. The cable and satellite TV market has reached a saturation point in several parts of the world. As a result, the growth of the pay television market is substantially driven by the growing penetration of Internet Protocol Television (IPTV). Service providers have started focusing on the cost-effective delivery of High Definition (HD) content to gain a competitive edge in the industry.
The shift of subscribers toward Over The Top (OTT) services has been perceived as a major threat to the pay TV industry, especially in countries where high-speed internet is available at affordable rates. Other reasons responsible for this shift include rise in programming expenses for traditional pay television, decline in multi-channel affordability, and attractive deals offered with the sale of OTT devices such as Chromecast and Amazon Fire TV.
In order to overcome this threat, several cable TV and IPTV service providers have formed partnerships with OTT providers to jointly offer their services to users. For instance, DISH Network introduced Sling TV in the U.S. to allow subscribers to stream live television over the internet. Whereas Comcast Corporation introduced Stream to allow subscribers to stream content from network providers.
India pay TV market by technology, 2014 - 2025 (USD Billion)
Furthermore, content owners and channel providers are increasingly engaging in the distribution of OTT packages either as an alternative to pay TV distribution in the market, where there are fewer opportunities for OTT services, or to complement pay television services, e.g. HBO Now.
Some IPTV operators are embracing new delivery architectures, such as Pay TV Lite, which uses a set top box, OTT device (e.g. Roku), or a gaming console (e.g. Xbox) to deliver a streamlined package of local broadcast channels over a closed IP network to viewers. Pay TV Lite uses contemporary streaming technologies, such as Apple HTTP live streaming, Microsoft Smooth Streaming, and Adobe HTTP dynamic streaming, to deliver multiple content options to subscribers.
The IPTV subscription market was valued at over USD 15 billion in 2016 and is projected to grow at a strong rate over the forecast period. The growing demand for live television, Video on Demand (VOD), and interactive television has contributed to the growing prominence of the IPTV segment. The platform provides the ability to integrate television with other IP-based services such as high-speed internet access.
Mexico pay TV market, by number of subscribers (million), 2016 (%)
A large number of IPTV deployments have been observed in the Asia Pacific region. Prominent IPTV operators, such as Germany-based Deutsche Telekom and India-based Akash Optifibers, provide access to IPTV without the need to connect to the internet. Additionally, cable television operators have also started providing IPTV services through existing networks; for instance, Butler-Bremer Communications is one such company delivering these services in the U.S.
The satellite TV subscription market is expected to continue holding a major proportion of the global revenue over the forecast period. The flexibility associated with satellite television is expected to play a pivotal role in its dominance. Subscribers have started customizing their packages according to their needs. For instance, households opt for a holistic package that consists of movies, news, songs, sports, and cartoons, whereas the commercial end-users mainly opt for sports, news, and songs channels. This is expected to shape the dynamics of the satellite TV industry positively in future.
The market of pay TV is characterized by contrasting growth trends in developing and developed countries. Subscribers in the U.S., the UK, and Germany are shifting toward OTT services, whereas the Pay TV market is still witnessing considerable growth in countries such as India, China, Brazil, and Mexico.
The market of pay TV is losing ground in the U.S. owing to increasing programming expenses, declining multi-channel affordability, rising affordable internet-based alternatives, and the growing prominence of OTT services, thereby leading to loss of pay TV subscribers. The region has witnessed a high shift of viewers toward services such as Netflix, YouTube Red Originals, Amazon Prime, and Hulu.
In India, the market is increasingly gaining prominence as the country is not entirely digitized yet. Moreover, the penetration of pay television in the rural sectors is low in the country, which results in attractive growth avenues in the sector.
Some of the key market players include DirecTV (AT&T), Comcast Corporation, British Sky Broadcasting (BSkyB), Charter Communications, and Foxtel.
Organizations are forming mergers and strategic alliances to expand their service offerings and retain their subscribers. For instance, in May 2016, Charter Communications, Time Warner Cable, and Bright House Networks merged to form Spectrum, a unified TV, internet, and voice solutions provider. The merger has enabled the companies to maximize their growth opportunities in the U.S. market. In July 2015, AT&T Inc. announced the acquisition of DirecTV to offer pay TV users numerous choices for video entertainment on their mobile screens with the help of high-speed internet.
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Attribute |
Details |
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Base year for estimation |
2016 |
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Forecast period |
2017 - 2025 |
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Market representation |
Revenue in USD Billion & CAGR from 2017 to 2025 |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, and MEA |
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Country scope |
U.S., Canada, UK, Germany, China, India, Japan, Brazil, and Mexico |
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Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
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15% free customization scope (equivalent to five analyst working days) |
If you need specific market information that is not currently within the scope of the report, we will provide it to you as a part of the customization |
This report forecasts revenue growths at global, regional, and country levels and provides an analysis of industry trends in each of the sub-segments from 2016 to 2025. For the purpose of this study, Grand View Research has segmented the global pay TV market based on technology and region.
Technology Outlook (No. of subscribers, Million; Revenue, USD Billion; 2014 - 2025)
Cable TV
Satellite TV
Internet Protocol Television (IPTV)
Regional Outlook (No. of subscribers, Million; Revenue, USD Billion; 2014 - 2025)
North America
U.S.
Canada
Europe
Germany
UK
Asia Pacific
China
India
Japan
Latin America
Brazil
Mexico
MEA
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