Pay-TV Revenues in Sub-Saharan Africa to Spike

LONDON: Pay-TV revenues in Sub-Saharan Africa are forecast to reach $6.22 billion in 2020, up from $3.54 billion in 2014 and $1.92 billion in 2010, according to a new report from Digital TV Research.

The fourth edition of the Digital TV Sub-Saharan Africa report asserts that South Africa and Nigeria will contribute more than half of the region’s pay TV revenues by 2020 for the 34 countries covered. Nigeria alone will more than double its revenues from $449 million in 2014 to $1.15 billion in 2020.

Satellite TV accounted for 92 percent of the 2014 pay-TV revenues, although pay DTT will make gains, contributing $802 million in 2020, which is quadruple the 2014 total. Competition and take-up of the less expensive DTT packages are set to force ARPU down in most countries.

Of the 12.92 million pay-TV subscribers at the end of 2014, 9.65 million were pay satellite TV and 2.81 million pay DTT. The pay total will more than double to 28 million by 2020, with satellite TV contributing 16 million and pay DTT another 9.4 million.

Simon Murray, principal analyst at Digital TV Research, said: “Three companies [Multichoice (DStv and GOtv), Canal Plus and StarTimes] accounted for more than 90 percent of pay-TV subscribers in Sub-Saharan Africa by end-2014. However, we have outlined plans for at least 30 major platform launches in 2015 throughout this report—at least twice as many as in 2014.”

He continued: “Kenya has shown—and will continue to show—considerable digital TV growth, but it may be showing signs of overheating. Kenya now boasts two pay DTT platforms, a cable network and four satellite TV operators—too many for a country with only 2.87 million TV households?”