TV subscriptions and licence fees

TV subscriptions and licence fees

 

TV subscriptions and licence fees markets by growth and scale


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Cable TV’s share of the pay-TV market will decline over the next five years

Emerging TV powers move up global TV rankings

Key insights at a glance

1

Subscription TV will not be daunted by the rise of OTT, as it grows across global markets. Global subscription TV revenues will grow at a CAGR of 3.5% over the next five years to US$236bn in 2018. This growth demonstrates that subscription TV is in a healthy position, assisted by the initiatives it has implemented to counter the impact of OTT and other disruptive influences.

 
2

Cable TV will fight back in the next five years, boosted by the switch to digital. Digital cable will grow at a CAGR of 9.6% over the next five years to reach 455mn subscribers in 2018. The move towards a digital-focused industry means cable will return to growth in the longer term.

 
3

IPTV enjoying sporadic success, but fails on a global scale. IPTV subscriber numbers are growing quickly, but this success is limited to a few markets. China is one of the few countries making progress and its sheer scale makes it the clear market leader with 31% of all IPTV households globally in 2013.

 
4

China will become the second-largest TV market in 2016, making the biggest move among the world’s major TV players. When including all TV revenues, China will surpass both the UK in 2014 and Germany in 2016 to reach the number two spot (behind the US).

 
5

BRIC investment in sophisticated subscription TV technologies creates big gains over the next five years... All BRIC countries – but particularly India and China – have prioritised investment in subscription TV technology. They are reaping the benefits of this by moving up the global TV rankings.

 
6

...but smaller emerging markets will see double-digit growth rates. In the next five years, TV markets in smaller emerging territories are set to show the most impressive revenue growth levels. The top three are: Saudi Arabia (16.1% CAGR), Kenya (15.9% CAGR) and Thailand (14.8% CAGR).



What data can I access by purchasing an online subscription?

The following data is available for TV subscriptions and licence fees for 54 countries (where available).

Revenue data:

  • Total TV subscription and licence fee revenue
  • Public licence fee revenue
  • TV subscription revenue

Non-revenue data:

  • Total cable TV households (mn)
  • Digital cable TV households (mn)
  • Analogue cable TV households (mn)
  • Subscription TV households (mn)
  • Subscription TV penetration (%)
  • Cable TV penetration (%)
  • IPTV households (mn)
  • IPTV penetration( %)
  • Satellite TV households (mn)
  • Satellite TV penetration (%)
  • Pay DTT households (mn)
  • Pay DTT penetration(%)

Segment definition

This segment comprises consumer spending on basic and premium TV subscriptions, and consumer spending on public licence fees where applicable.

Consumer spending on basic and premium subscriptions includes Video on Demand (VOD) and pay per view (PPV) accessed from cable operators, satellite providers, telephone companies and other multichannel distributors. It considers only the primary TV subscription in each household so penetration will not exceed 100%. It captures all instances where a TV service can only be legitimately received by paying a subscription fee.

Cable TV households receive TV programming primarily via an operator which has historically delivered services via cable/MMDS technology. Digital cable services deliver digital programming to viewers, whereas analogue cable services provide analogue programming.

Internet protocol TV (IPTV) households receive TV programming primarily via a telecoms operator wholly or partly using managed Internet protocol TV technology.

Satellite TV households receive TV programming primarily via an operator which has historically delivered services via DTH/SMATV satellite-TV technology.

Digital terrestrial TV (DTT) households receive TV programming primarily via an operator which has historically delivered services via digital terrestrial TV (DTT) technology.

This segment includes revenue from both video on demand (VOD) and pay per view (PPV) services provided by a TV subscription provider as part of a TV subscription package, or as an enhancement to that core package. This is also considered within the TV subscriptions segment (though not broken out) but 100% of the total revenue is shown in the TV section, and figures for total cross-segment revenues eliminate any double counting. This revenue is considered non-digital and from consumer spending.

Note that this segment includes incremental revenue from 'TV Everywhere' packages (such as Sky's Go) that bundle OTT with conventional pay-TV services. But it does not include revenue from stand-alone operator OTT services, such as MTG's Viaplay or Sky's Now, or from services that are provided solely over the open Internet, such as Netflix (these services are included in the Filmed Entertainment segment).

The segment also includes consumer spending on public licence fees where these are required (in EMEA and APAC). Where the public licence fee also covers provision of radio services, a proportion of the total has also been included in the Radio segment, but 100% of the total fee is shown in the TV section, and figures for total revenue eliminate any double counting. This revenue is non-digital, and from consumer spending.

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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