South Korea: Multiplay service revenue at $7.7bn by 2026
July 8, 2022
Multiplay service revenue in South Korea is expected to grow at a compound annual growth rate (CAGR) of 2.4 per cent from $6.9 billion (€6.8bn) in 2021 to $7.7 billion in 2026, driven by the steady rise in the number of multiplay households and growth in the average monthly multiplay household spending, according to GlobalData, a data and analytics company.
GlobalData’s South Korea Multiplay Services Forecast (Q1 2022) reveals that the number of multiplay service households in the region will increase at a CAGR of 1.1 per cent over the forecast period, supported by fibre-optic network expansion by fixed operators that will enable them to deliver bundled plans built around high-speed internet services. SK Telecom, for instance, offers multiplay bundles inclusive of IPTV and fibre-based broadband services
The average monthly multiplay household spending is expected to increase from an estimated $31.26 in 2021 to $32.92 in 2026 due to the growing adoption of multiplay service bundles inclusive of IPTV services and value-added OTT services like Netflix and Wavve.
Pradeepthi Kantipudi, Telecom Analyst at GlobalData, said: “Doubleplay service plans will account for the majority of the multiplay households in South Korea through the forecast period, but its share in the total multiplay households will drop from 46.4 per cent in 2021 to 39.7 per cent in 2026. Tripleplay and quadplay services will see their share in the total multiplay households grow from 35.8 per cent and 17.8 per cent in 2021 to 37.1 per cent and 23.2 per cent, respectively, in 2026.
“The three major operators, KT Corp, SK Telecom, and LG Group, are offering discounts on fixed broadband and multiplay plans with a goal to bring down churn and increase revenue-generating units (RGUs). LGU+, for instance, is offering a discount of up to KRW127,600 (€114)/month on its family multiplay bundle inclusive of fixed broadband and mobile services. KT Corp will continue to lead the tripleplay and quadplay segments in terms of subscriptions through 2026.”