Kagan: IPTV overtakes DTH in 2018

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In 2018, IPTV overtook DTH as the second-largest multichannel platform in the world by subscribers after cable TV, accounting for 23.4 per cent of the total market of 1.07 billion households. Kagan, a media research group within S&P Global Market Intelligence, estimates that IPTV is projected to post a compound annual growth rate (CAGR) of 7 per cent subscriber over the next five years, second only to pay DTT with a projected 8.5 per cent five-year CAGR.

While cable TV is expected to remain the largest multichannel platform globally in the next five years, its subscribers are modelled to decline at 0.3 per cent CAGR by 2023, largely due to migration to IPTV in Asia Pacific and Western Europe.

According to Kagan, the global multichannel market grew by 3.1 per cent year-over-year in 2018. China, India and the USA remain the largest multichannel markets, collectively claiming 57 per cent of the global subscriber total in 2018. China and India alone are expected to account for 50 per cent of the global market by 2023.

Additional takeaways from Kagan’s global multichannel market overview report:

  • Global multichannel household growth will continue to decelerate with most markets across Europe, North America and advanced multichannel markets in Asia reaching saturation.
  • Number of multichannel subscribers worldwide is modelled to grow at a 2.4 per cent CAGR over the next five years to reach 1.21 billion.
  • Global multichannel economy generated $230.06 billion in video service revenues in 2018, which are projected to increase to $245.41 by 2023.
  • Multichannel penetration breached 60 per cent by 2018 year-end and is expected to increase to 61.2 per cent over the next five years.
  • The effects of cord cutting are only observed in North America where multichannel subscribers, revenue and penetration are projected to decline in the foreseeable future.
  • 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 biggest threat to traditional multichannel 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.

 


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