Forecast: IPTV leading pay-TV service in China over next 5 years

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The total pay-TV services revenue in China is set to decline at a compound annual growth rate (CAGR) of 0.5 per cent from $32.9 billion (€27.8bn) in 2020 to $32.1 billion in 2025, due to the growing preference for OTT video streaming services and falling pay-TV average revenue per user (ARPU), according to GlobalData, a data and analytics company.

An analysis of GlobalData’s China Pay-TV Forecast Model reveals that cable TV subscriptions will decline at a CAGR of 7.6 per cent over 2020–2025 due to widespread cord-cutting trend. IPTV subscriptions on the other hand will grow at a CAGR of 5.8 per cent over the same period.

Akash Jatwala, Senior Research Analyst of Telecoms Market Data and Intelligence at GlobalData, said: “IPTV will be the leading pay-TV service platform in China in terms of subscriptions during 2020-2025 and will account for 75 per cent of the total pay-TV subscriptions by the end of 2025. This growth will be primarily driven by the strong fibre-optic network penetration in the country that supports delivery of IPTV services. Furthermore, competitive pricing and bundled plans offered by major pay-TV operators will drive IPTV subscription base over the forecast period.

“China Mobile will remain the leading pay-TV service provider over 2020-2025, supported by its strong foothold in the IPTV segment. The operator’s leadership position can be attributed to its acquisition of fixed operator China Mobile Tietong and rapidly deploying fiber-optic network, which enables it to deliver high quality VoD services through Mobaihe set-top box to attract new subscribers,” added Jatwala.


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