Emerging Markets Lead Satellite Pay-TV Growth

May 27, 2015 World Screen
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LONDON: India, Russia and Brazil are expected to drive gains in the global satellite TV market, according to a new report from Digital TV Research.

The new Global Satellite TV Forecasts report reveals that the number of pay satellite TV—DBS or DTH—homes is predicted to reach 265 million by 2020, up from 203 million at end-2014 and 143 million at end-2010. India will continue to lead the sector, with 66.9 million pay satellite TV subs in 2020, followed by the U.S. with 34.1 million. Russia (18.5 million) and Brazil (15.3 million) will take third and fourth place, respectively. These four countries will account for just over half the global total by 2020.

Of the 61.6 million pay satellite TV subscribers to be added between 2014 and 2020, India will contribute 23.5 million, Indonesia 5 million, Brazil 3.4 million and Russia 2.7 million. The pay satellite TV subs total will more than double in 41 countries. However, pay satellite TV subs totals will fall in 17 countries between 2014 and 2020, as subscribers convert to other platforms.

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Global satellite TV revenues are expected to reach $94.8 billion in 2020, up from $88.4 billion in 2014 and $71.8 billion in 2010. Satellite TV revenues will overtake total cable TV revenues in 2015. In terms of revenue growth, Asia Pacific and Sub-Saharan Africa will show strong results for satellite TV. However, revenues will fall in Western Europe and North America. The U.S. will remain the satellite TV market leader by revenues. Brazil will be second in revenue terms by 2020 ($6.8 billion). India will add the most satellite TV revenues ($2.5 billion, moving from tenth to fifth place) between 2014 and 2020, with Nigeria increasing by $437 million and Indonesia $414 million.

In Canada, however, revenues will fall by $805 million, the U.S. by $421 million and France $232 million. Revenues will fall or be flat in 38 countries. Much of this is due to greater competition forcing satellite TV platforms to offer cheaper packages which will lead to lower ARPUs.