Asia Pac pay-TV services to see $809MN erosion by 2025 | Media Analysis | Business | News | Rapid TV News
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A continued decline in cable TV subscriptions and a fall in the average spend per pay-TV account in the region will lead to pay-TV service revenues in Asia-Pacific dropping from US$61.6bn in 2020 to US$60.8 bn in 2025 due to slowdown in pay-TV household penetration, according to research from GlobalData.
APAC pay TV GlobalData 2march2021
Moreover, says the Asia-Pacific Pay-TV Forecast Pack report, as users swap their traditional pay-TV subscriptions with over-the-top (OTT) video alternatives, pay-TV subscriptions will slow down or decline in some of the most advanced markets in the region such as Hong Kong, Singapore, Australia and Vietnam over the forecast period.

Assessing the outlook for the leading platforms, the study suggested that cable TV, which is currently the leading pay-TV platform in the region, by subscriptions, will see its share in the total pay-TV subscriptions decline over the forecast period. While the share of direct-to-home (DTH) services will witness marginal growth in the total pay-TV subscriptions, IPTV services will see maximum gain from 42.5% in 2020 to 53.5% by the end of 2025. The analyst noted that the rapid deployment of FTTH/B network in countries such as the Philippines, Thailand, New Zealand and India has been a major catalyst for IPTV adoption in the region.

However, the study also cautioned that the growing demand for IPTV services will however fail to reverse the declining trend projected for the overall pay-TV service revenues in the region over the forecast period as cord-cutting by subscribers and competitive pricing/ discounts offered by operators will continue to cause the average spend per pay-TV account to stagnate or even decline. China leads the IPTV segment in terms of subscriptions and is forecast to account for 80.2% of the total pay-TV subscriptions in the region by the end of 2025.

Observing the market dynamics, Kantipudi Pradeepthi, research analyst of telecoms market data and intelligence at GlobalData, said OTT-based video streaming platforms had caused massive disruption in the traditional pay-TV services in the region. “Introducing OTT offerings as a part of their product bundles or partnering with OTT players can help pay-TV operators retain their customer base and improve their content proposition,” she remarked.