Global multichannel market rises 3.1% in 2018 as IPTV overtakes DTH | Media Analysis | Business
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Research from Kagan has revealed that with year-over-year growth of 14.3%, IPTV was to be the fastest-growing of the three major pay-TV platforms in 2018.
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Overall, according to Kagan, the global multichannel market grew by 3.1% year-over-year in 2018. China, India and the USA remain the largest multichannel markets, collectively claiming 57% of the global subscriber total in 2018. China and India alone are expected to account for 50% of the global market by 2023. Over the course of the year, IPTV had overtaken direct-to-home (DTH) as the second-largest multichannel platform in the world by subscribers after cable TV, accounting for 23.4% of the total market of 1.07 billion households.

Kagan’s global multichannel market overview report also forecast that global multichannel household growth will continue to decelerate with most markets across Europe, North America and advanced multichannel markets in Asia reaching saturation. The number of multichannel subscribers worldwide is modelled to grow at a 2.4% CAGR over the next five years to reach 1.21 billion. Multichannel penetration breached 60% by 2018 year-end and is expected to increase to 61.2% over the next five years.

Kagan estimates that over the next five years, IPTV will post a compound annual growth rate (CAGR) of 7% subscriber second only to pay digital terrestrial television (DTT) with a projected 8.5% five-year CAGR. Yet while it expects cable TV to remain the largest multichannel platform globally in the next five years, Kagan calculates that such subscribers are modelled to decline at 0.3% CAGR by 2023, largely due to migration to IPTV in Asia Pacific and Western Europe.

Global multichannel economy generated $230.06 billion in video service revenues in 2018, which are projected to increase to $245.41 by 2023.

Looking at the biggest threats to traditional services going forward, interestingly, Kagan found that effects of cord-cutting are mainly observed in North America where multichannel subscribers, revenue and penetration are projected to decline in the foreseeable future. It added that cord-cutting also impacted a handful of oversaturated markets, including Singapore and Hong Kong, which led to subscriber losses and household penetration declines. In Europe, the Kagan report identified the biggest threat to traditional multichannel was in posed by DTT platforms lies in the integration of OTT and catch-up TV services, as well as the ability to stream channel packages via hybrid boxes.