Report: AsiaPac Pay-TV Revenues to Rise as North America Takes a Hit

May 28, 2014 World Screen

LONDON: Global pay-TV revenues are forecast to reach $209 billion in 2020, as revenues in the Asia Pacific rise by 47 percent, helping to offset a 9.2-percent loss in North America, according to Digital TV Research. 

The Digital TV World Revenue Forecasts report states the the fast-growth years are over for pay TV. As a point of comparison, revenues grew by $24 billion between 2010 and 2013; they will grow from $193 billion in 2013 to $209 billion in 2020.

In North America, pay-TV revenues are expected to drop by nearly $9 billion (9.2 percent) between 2013 and 2020. Western Europe will decline by 1.6 percent. However, revenue will grow by nearly $15 billion (47 percent) in the Asia Pacific. Revenues are forecast to more than double in Sub-Saharan Africa to $5 billion.

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The U.S. will still be the world's largest pay-TV revenue earner by some distance. However, its revenues are set to decrease by $7.9 billion between 2013 and 2020 as homes convert to bundles and as competition forces prices down. Cord-cutting is not expected to have much of an impact, as pay-TV penetration declines from 86.4 percent in 2013 to 84.1 percent in 2020. Cable TV revenues will be down by $11.9 billion, with analogue cable TV revenues down from $5.1 billion in 2013 to nothing by 2015. Digital cable TV revenues will also decline, from $37.3 billion in 2013 to $30.5 billion in 2020. Satellite TV will be up by $1.5 billion and IPTV will be up by $2.5 billion, marking record growth.

Pay-TV revenues will more than double in 40 countries between 2013 and 2020. Most of the fast-growing nations by percentage increase will be in Africa, with Myanmar, Laos and Bangladesh providing notable exceptions. India’s revenues will climb by $6.6 billion between 2013 and 2020, with Brazil up by $2.4 billion and China up by $2.2 billion.

Simon Murray, author of the report, said: “Based on forecasts for 138 countries, revenues will fall in 18 countries in 2014, with the U.S. dropping by $1.05 billion. Revenues will decline for 21 countries between 2013 and 2020.”