Digital TV Research’s “Global Pay TV Revenue Forecasts” report has predicted that pay television or pay TV will face at least an 11 percent decline in revenue by 2023 despite the increase of subscribers by 9 percent. The said decrease is due to more households choosing bundles over regular pay TV subscriptions.
In 2016, pay TV revenue was at its peak at $205 billion and continued to rise due to the existence of an increasing number of players in the market and different flexible subscription plans. Despite its good performance, Simon Murray, Digital TV Research’s principal analyst, predicts pay TV revenues, specifically in North America, will have a massive fall of $22 billion between the years 2017 and 2023.
Also, worldwide pay TV income will decrease by $19 billion, but other regions will grow. In line with this, Europe will drop by $2 billion in revenue shares, but the Asia-Pacific region will have an increased growth of $3 billion.
The research company also noted that eight countries out of the top ten will have their revenue downturn between 2017 and 2023. To be more precise, 47 out of 138 countries as part of the report coverage will see a decline in revenues between the years 2017 and 2023.
According to the report, 12 countries globally will face a loss of more than 10 percent in their pay TV income. US pay TV, on the other hand, peaked in 2015 at $102 billion, but a decline of $27 billion is being forecast to take place between 2015 and 2023, thereby leading to a total decline of $75 billion.
China and India will have an increase in revenue between the years 2017 and 2023 amounting to almost $1 billion and $1.6 billion, respectively. Africa is another country that is being predicted to improve its pay TV growth percentage.
Cable TV, satellite TV, and analog TV revenue progress will be the same. Among all global pay TV subscription options, internet protocol television (IPTV), or also known as online or digital TV, is the real champion of pay TV with an income growing from $25 billion in 2017 to $27 billion in 2023.