The total pay-TV services revenue in Australia is set to decline at a compound annual growth rate (CAGR) of 2.6 per cent from $2.4 billion (€2bn) in 2020 to $2.1 billion in 2025 due to continued drop in cable TV and DTH subscriptions and revenue, reveals GlobalData, a data and analytics company.
According to GlobalData’s Australia Pay-TV Forecast Model, cable TV and DTH subscriptions will decline at a CAGR of 10 per cent and 7 per cent, respectively, between 2020 and 2025 due to the growing adoption of OTT video alternatives. Cord cutting by viewers and the decline in average revenue per user (ARPU) levels across all pay-TV service segments will also hurt the overall pay-TV revenues over the forecast period.
Aasif Iqbal, Telecom Analyst at GlobalData, says: “Internet Protocol television (IPTV) will remain the leading platform to deliver pay-TV services in Australia and will see its subscriptions grow at a CAGR of 6.1 per cent between 2020-2025, supported by improving fixed broadband infrastructure in the country and growing adoption of multiplay packages with integrated IPTV services.
“Foxtel will lead the pay-TV market in terms of subscription in 2020 and will maintain its leadership in the segment through 2025 through its promotional discount offers,” added Iqbal.