Global TV Subscription Fees to Top $210 Billion in 2014

NEW YORK: Consumers worldwide will continue to spend on TV subscriptions, reports PricewaterhouseCoopers in its latest five-year outlook, forecasting a 7.5 percent compound annual growth rate in television subscription revenues to reach $210.8 billion by 2014.

PwC notes that TV subscriptions rose 4.6 percent this year as people stayed home to watch TV during the recession. Improved economic conditions and enhanced premium services will increase multichannel take-up rates and VOD usage during 2012 and 2013. VOD revenues will climb from $4.6 billion this year to $8.3 billion in 2014, a 15.4 percent CAGR. Pay-per-view revenues, meanwhile, will remain flat at $4.8 billion in 2014. Mobile TV revenues will see the strongest growth, increasing from $1.16 billion this year to $3.4 billion in 2014, reflecting a 27.7 percent CAGR. Public TV license fees will see little change, increasing from $29.6 billion in 2010 to $30.8 billion in 2014.

Filmed entertainment, meanwhile, will experience a 4.8 percent CAGR in the period to reach $107.5 billion in 2014, of which $45.3 billion will come from North America, $29.8 billion from EMEA, $29.2 billion from Asia Pacific and $3.1 billion from Latin America. Box office revenues will continue to increase, rising from $32.1 billion in 2010 to $41.7 billion in 2014. Home video, after dipping in 2009, will also rise, from $55.2 billion this year to $65.9 billion in 2010. Physical sell-through will take the lion’s share of home-video revenues, at $37.9 billion, with in-store rentals generating $19.9 billion in revenues by 2014. Digital downloads will bring in $2.1 billion, up from $593 million this year.