One size does not fit all in the global pay-TV industry, with research from Teligen, covering 115 providers in 31 OECD countries, showing significant price differences between countries and providers.
The Strategy Analytics division’s new report, Pay TV Prices in OECD Countries, November 2016, not only revealed significant differences in package prices between providers in the same country but also showed great variation in the structures and underlying technologies of the pay-TV offers, even when benchmarking the most basic offers from each provider.
Fundamentally pay-TV has remained stable in most countries over a period of time, despite the introduction of skinny bundles driving the minimum price down in select countries such as Canada and Denmark. This was also the case the last time Strategy Analytics investigated the phenomenon.
In the latest research and when selecting the most basic set of user requirements — without specific requirements for content or technical capabilities like HD or recording — the 10 countries with lowest prices are Poland, Sweden, Finland, Hungary, Estonia, Austria, Denmark, Slovak Republic, Slovenia and Mexico. Yet even among the cheapest offers per country there are pay-TV packages that include more advanced properties like HD and recording. The range of offers may vary significantly between countries. For the most basic requirements the average monthly price across the 31 countries is US$/PPP 21.41 including VAT/tax. This does not include the TV licence fee found in many countries.
“We continue to see a trend towards skinny bundles and pick-and-mix offers in countries where the pay-TV market is more mature, and where providers are concerned about the growing trend of ‘cord-cutters’, particularly the younger consumers who are increasingly watching content through OTT services such as Netflix,” remarked Teligen benchmarking consultant Edouard Bouffenie.