Global Multichannel Market Posted Gains in 2018

The global multichannel market grew by 3.1 percent in 2018, according to Kagan, which forecasts that the growth rate will slow in the next five years as the number of subscribers reaches 1.21 billion in 2023.

Cord-cutting is largely being seen in North America—with subscribers, revenue and penetration projected to decline in the foreseeable future—as well as oversaturated markets like Singapore and Hong Kong. “In Europe, the biggest threat to traditional multichannel posed by DTT platforms lies in the integration of OTT and catch-up TV services, as well as the ability to stream channel packages via hybrid boxes,” Kagan says.

Cable remains the dominant model, but IPTV knocked DTH out of the second place spot last year, accounting for 23.4 percent of the total market of 1.07 billion households. Cable subs are forecast to decline slightly in the years ahead, while DTT will have an 8.5 percent CAGR and IPTV a 7 percent CAGR. Multichannel penetration topped 60 percent in 2018 and will reach 61.2 percent in the next five years.

China, India and the U.S. remain the largest multichannel markets, with a 57-percent share of the total. By 2023, China and India alone are expected to account for 50 percent of the global market.

Kagan further reports that the global multichannel economy generated $230.1 billion in video service revenues in 2018. This is expected to hit $245.4 billion in 2023.