Forecast: Multiplay service revenue in S. Korea at $6.6bn in 2027
June 30, 2023
South Korea’s multiplay service revenue is projected to experience a gradual yet consistent growth throughout the forecast period. It is forecast to climb from $6.1 billion (€5.5bn) in 2022 to $6.6 billion in 2027, displaying a compound annual growth rate (CAGR) of 1.7 per cent. This growth will be sustained by an increasing number of multiplay households and a rise in the average monthly spending of these households, according to GlobalData, the data and analytics company.
GlobalData’s South Korea Multiplay Services Forecast (Q1 2023) reveals that the number of multiplay service households in South Korea will increase at a CAGR of 1.1 per cent over the forecast period, supported by the fibre-optic network expansion by fixed operators 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 $27.12 in 2022 to $27.69 in 2027 due to the growing adoption of relatively high-cost quadruple-play services and service bundles inclusive of IPTV services and value-added OTT services.
Harendra Sharma, Telecom Analyst at GlobalData, commented: “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 gradually drop from 45 per cent in 2022 to 42 per cent in 2027. Tripleplay’s share of total multiplay households will also drop from 36 per cent in 2022 to 35 per cent in 2027. Meanwhile, Quadplay services will see its share in the total multiplay households grow from 19 per cent to 23 per cent over the same period. 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). KT Corp will continue to lead the tripleplay and quadplay segments in terms of subscriptions through 2027.”