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Slashdot: Global Pay TV Penetration To Fall For the First Time in 2024

Global Pay TV Penetration To Fall For the First Time in 2024
Published on November 28, 2023 at 11:30PM
Global pay TV penetration (the number of pay TV subscriptions relative to the number of households) is set to decline for the first time ever in 2024 following a peak penetration of 60.3% in Q4 2023. This decline will continue into the forecast period, with a drop of almost 4 percentage points by the end of 2028, according to Ampere's latest forecasts, which cover 96 markets. From a report: This decline in pay TV penetration has been driven primarily by the Americas, and in particular North America which has seen its pay TV penetration almost halve from a high of 84% in 2009 to 45% in 2023. In the case of North America, this drop has been caused by a combination of high costs (currently over $90 per month) and competition from a mature SVoD market which is driving customers increasingly to cut the cord. However, the recent distribution deal between Disney and Charter in the US, which saw select Disney streaming products bundled into Charter's TV packages, demonstrates that cable operators in the region remain a powerful force as distribution partners, giving streamers the ability to reach a larger and potentially untapped audience base. In addition to North America, Latin America has also shown large declines in pay TV penetration, with a drop of around 10 percentage points since its peak of 42% in 2016. On the contrary, the APAC and Europe have shown the highest penetration growth in recent years, with large gains coming from China, especially after China Mobile acquired an IPTV license in 2018. The growth in these regions has largely come from low-cost IPTV services which are often bundled into broadband packages for a low cost, and helps drive pay TV subscriptions in these areas. In Europe, markets such as Portugal, Serbia and Hungary are expected to see further growth in the forecast period.

Read more of this story at Slashdot.

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