The ongoing spike in popularity of over-the-top (OTT) services has dented traditional TV providers globally and, says a study from GlobalData, Singapore is no exception and the city state’s pay-TV will feel the pinch until 2025 at least.
Indeed, the data analytics company’s Singapore pay-TV Forecast Pack report forecasts that the surge in the adoption of OTT video services in Singapore will pull down the overall pay-TV service revenues by 1.45% CAGR between 2020 and 2025. During the same time, pay-TV household penetration is set to drop by more than five percentage points from 39.3% in 2020 to 33.8% in 2025. Comparatively, pay-TV household penetration in the overall Asia-Pacific (APAC) region will increase from 74.8% to 75.6% during the forecast period.
Looking at the individual companies driving the market, GlobalData said that following StarHub’s successful migration of its cable TV subscribers to IPTV services in 2019, IPTV now represents the only platform in the pay-TV services market in Singapore. Overall IPTV subscriptions are however set for a decline of 2% CAGR over the forecast period, reaching 0.63 million in 2025.
This said the analyst is due primarily to the growing adoption of OTT-based video services such as Netflix and Amazon Prime. Singtel is set to remain the leading player in Singapore’s pay-TV services market through the forecast period supported by its discounted IPTV plans.
“With the increasing shift in TV viewership from traditional platforms to OTT video services, the pay-TV services market in Singapore is bound to decline further through the forecast period and operators have no choice but to offer services at discounted prices to stay relevant in the market,” noted Sree Venkatesh, senior analyst of telecoms market data and intelligence at GlobalData.
Looking at the individual companies driving the market, GlobalData said that following StarHub’s successful migration of its cable TV subscribers to IPTV services in 2019, IPTV now represents the only platform in the pay-TV services market in Singapore. Overall IPTV subscriptions are however set for a decline of 2% CAGR over the forecast period, reaching 0.63 million in 2025.
This said the analyst is due primarily to the growing adoption of OTT-based video services such as Netflix and Amazon Prime. Singtel is set to remain the leading player in Singapore’s pay-TV services market through the forecast period supported by its discounted IPTV plans.
“With the increasing shift in TV viewership from traditional platforms to OTT video services, the pay-TV services market in Singapore is bound to decline further through the forecast period and operators have no choice but to offer services at discounted prices to stay relevant in the market,” noted Sree Venkatesh, senior analyst of telecoms market data and intelligence at GlobalData.
