Advanced Television

Forecast: China pay-TV market stagnant 2021 to 2026

March 2, 2022

The pay-TV services revenue in China is expected to grow at a sluggish compound annual growth rate (CAGR) of 0.6 per cent from $35.1 billion (€31.6bn) in 2021 to $36.2 billion in 2026, due to a steady decline in cable TV subscriptions and drop in overall pay-TV average revenue per subscription (ARPS), according to GlobalData, a data and analytics company.

An analysis of GlobalData’s China Pay-TV Forecast indicates that cable TV subscriptions are expected to decline at a CAGR of 0.9 per cent between 2021 and 2026 while the average monthly spend per pay-TV account will drop from $5.43 to $5.20 over the same period.

Hrushikesh Mahananda, Telecom Analyst at GlobalData, commented: “A steady rise in the adoption of OTT-based video services by consumers seeking new content is affecting the overall pay-TV ARPS and revenue growth in China.”

“IPTV will be the leading pay-TV service platform in China in terms of subscriptions throughout the 2021-2026 period. This growth will be primarily driven by solid demand for multi-play bundled packages with integrated IPTV services and increasing fixed broadband penetration in the country that supports delivery of IPTV services,” added Mahananda

China Broadcasting Network (CBN) will lead the overall pay-TV services market throughout 2021-2026, driven by its monopoly in the cable TV segment.

Mahananda concluded: “Within the IPTV segment, China Mobile will lead given its robust focus on enhancing its content by strengthening the combined operation of big and small screen content and making a household data service portal consisting of digital cinema, broadband television and vertical content.”

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