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Proving that consolidation is now a global process, a Digital TV Research study has revealed that the leading hundred operators accounted for three-quarters of the world’s pay-TV subscribers at the end of 2015.
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The set-top box debate has seen another shot over the bow from the cable industry.
Global giants control two-thirds of pay-TV subs
Proving that consolidation is now a global process, a Digital TV Research study has revealed that the leading hundred operators accounted for three-quarters of the world’s pay-TV subscribers at the end of 2015.Moreover, said the Global Pay TV Operator Forecasts report, this proportion is not expected to change over the next five years. The top ten operators took 42% by the end of 2015, a similar picture to Europe where a study by the company found that the Western European pay-TV market was in the grip of only a small number of players with just Liberty Global, Sky Europe, Vodafone and Altice controlling the lion’s share of subs.
Looking at the global picture, the analyst calculated that by the end of 2015 12 operators had more than ten million paying subscribers, and this will climb to 18 operators by 2021. However, Digital TV Research predicts that the number of operators with more than five million subscribers will stay at 29.”
Pay-TV subscriptions for the world’s top 400 operators with 585 platforms across 100 countries are set to increase from a collective 778 million in 2015 to 912 million by 2021. The research showed that such operators took 84% of the 928 million global subscribers by end-2015, with this level expected to slowly rise to 85% of the 1,076 million by 2021. Only 93 (23%) of the 400 operators are set to lose subscribers between 2015 and 2021.
By a significant margin, China Radio & TV is the world’s largest pay TV operator with its domestic Government’s policy to consolidate cable TV meaning that it quickly became the world’s largest pay-TV operator, with 239 million subs by 2015. The operator is soon set to represent every cable TV home in China, with 251 million subscribers expected by 2021.
Commenting on what the business ramifications of the report could be, Simon Murray, principal analyst at Digital TV Research, said: “Despite adding 147 million subscribers between 2015 and 2021, subscription and VOD revenues for the 400 operators will remain flat at $206 billion. These operators accounted for 83% of the global total in 2015, but this proportion will fall to 80% by 2021. In fact, 115 of the 400 operators (29%) will lose subscription and pay-per-view (PPV) revenues between 2015 and 2021.”