TV subscriptions and license fees

Subscription revenues from pay TV providers will reach US$212bn by 2017, up from US$172bn in 2012 (at a CAGR of 4.3%), driven by rapid growth in the Asia Pacific and Latin American markets.

For all the industry talk of disruptive threats to its business models, the pay TV industry, on a global level, is proving very resilient. The demand for premium TV content remains strong among consumers, especially those in emerging markets, and the market overall will continue to grow.

Pay-TV subscription revenues (US$mn) 2012-2017

Subscription revenues from pay TV providers will reach US$212bn by 2017, up from US$172bn in 2012 (at a CAGR of 4.3%), driven by rapid growth in the Asia Pacific and Latin American markets—notably in China and Brazil. Brazil will surpass the UK, Canada and India in 2013 to become the third-largest market by 2017. 


 
Indonesia will be the fastest-growing TV market, with 21% CAGR in revenues and a market set to be worth US$1.7bn in 2017; Kenya, Thailand and Vietnam also all show impressive growth (13%+ CAGR).
The 4 fastest growing territories for TV subscription spending (2013-17 CAGR %)
 
The threat from OTT services should not be exaggerated. Even by 2017, revenues from OTT services will remain just 6% of overall pay TV revenues. But operators must adapt their services to changing consumer expectations for more on-demand content.
Global pay TV revenues (US$mn) and OTT share (%) 2012-2017
 
Cable will remain the dominant platform globally for delivering pay TV services, although its share will decline. Internet Protocol TV (IPTV) will be the fastest-growing platform—at a CAGR of 14%—but only in certain markets, such as China, the US, and South Korea.
Global subscription TV household penetration (%) by technology, 2012 and 2017
 

How we define this segment

This segment considers consumer spending on basic /premium subscriptions and licence fees. Revenues generated from cable TV, satellite TV, Internet Protocol Television (IPTV) and the paid element of Digital Terrestrial Television (DTT) are all included regardless of whether they are from a primary or secondary TV set.

The subscription spend considers all fees paid including video-on-demand (VOD) and pay-per-view (PPV) accessed through cable operators, satellite providers, telephone companies and other multichannel distributors. Television programming delivered over the Internet (including over-the-top [OTT] services such as Netflix) is not included within this segment. These spending streams are incorporated in the Filmed Entertainment segment.

Public TV licence fees are included where applicable (in EMEA and APAC) and cover the fee paid for both television and radio.

For subscription-TV household estimates, only the primary TV subscription in each household is considered. The penetration is calculated against the total number of households and will not exceed 100%. All subscriber estimates are referred to as year-end.

What data is included in the online Outlook?

Forecasts for advertising and consumer spend in the TV subscriptions and licence fees segment across 50 countries cover (where available):

  • Subscription spending (US$ m)
  • Public license fees (US$ m)
  • Total TV subscription and license fee spending (US$ m)
  • Subscription TV households (m)
  • Subscription TV penetration (%)
  • Cable TV households (m)
  • Cable TV penetration (%)
  • Digital cable TV households (m)
  • Analogue cable TV households (m)
  • IPTV households (m)
  • IPTV penetration (%)
  • Satellite TV households (m)
  • Satellite TV penetration (%)
  • Pay DTT households (m)
  • Pay DTT penetration (%)
 
 
 
 

 
 

Regions/countries covered

North America

EMEA

 

Asia Pacific

Latin America

Canada
United States

Western Europe
Austria
Belgium
Denmark
Finland
France
Germany
Greece
Ireland
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom

Central and Eastern Europe
Czech Republic
Hungary
Poland
Romania
Russia
Turkey

Middle East/Africa
Israel
Middle East/North Africa †
South Africa

Australia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Pakistan
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam

Argentina
Brazil
Chile
Colombia
Mexico
Venezuela

 †Comprises Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, and the United Arab Emirates