Global Pay-TV Revenue Set to Plummet - But Subs Are on the Up

                                                Image credit: insurancemarketreturn.com

"Revenues will decline in 51 countries between 2018 and 2024 " [1]

Digital TV Research has recently published a study showing that although: "Pay TV revenues [subscription fees and PPV movies and TV episodes] for 138 countries peaked in 2016 at $205 billion. Revenues will fall by 14% to $177 billion in 2024" [1]. Alarmingly, this performance equates to 2010 figures, even though pay-TV subscribers are predicted to rise by a whopping 380 million between 2010 and 2024 [1]. So let us take a closer look at this scenario. 

The Researcher's Principal Analyst, Simon Murray, explained that: “Subscriber growth is mainly in developing countries where ARPU is lower... In addition, subs are moving away from standalone packages to doubleplay and triple-play bundles. Standalone packages are more lucrative to TV” [1].

Photo credit: Digital TV Research 

Global Pay-TV Winners & Losers

Losers

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"The US will fall by $21 billion" [1]

It is forecast that from 2018 to 2024, a massive 22% - that is 8 out of leading 10 countries, will haemorrhage revenue. To cite a couple of examples: in 2015, American pay-TV revenues rolled in at the princely sum of $106 billion. However, nothing stays the same, and in 2024, its total is set to nose dive to just $76 billion. On a lesser scale, between 2018 and 2024, Great Britain's revenue is set to fall by 14% - which is almost $1 billion [1]. And then there is the Brexit factor and the potential crumbling of the EU to consider...

Murray, remarked that over the next five years, Digital TV does not expect the US to ameliorate this situation, noting: “Other countries will experience a slowdown – or even some small declines in subscriber numbers – but no other country will match the gloomy projections for the US” [2]. 

Winners

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Between 2018 and 2024, India is set to revel in a $1 billion in pay-TV revenue rise, bringing its total up by almost 20% to $6.32 billion. Moreover, during this period, the country will shoot up from 6th to 3rd position. Indonesia, on the other hand, [which is where OONA TV, the up and coming global OTT platform was first launched in 2017, and is set to serve 185 million people with its AVOD and SVOD options], is forecast to nab the prize for the 2nd largest winner in the same timespan, bringing in a healthy gain of $786 million [1].

Further, the report suggests that in 2024, China will still be providing one third of global pay-TV subscribers. Therefore, by 2024, India and China will: "collectively provide half the world’s pay TV subscribers" [2]. In addition to this: "by 2024, Netflix will contribute 203 million subscribers (21% of the global total), Amazon Prime Video 125 million (13%), and China 289 million (31%). Neither Netflix or Amazon Prime Video will operate in China), Disney+ 75 million and 255 million “others” [1], such as OONA Global.  

More About OONA

OONA offers consumers an unrivalled 3-in-1 FREE Unlimited Entertainment Bundle: Live VOD/TV, Video Games & Music Channels; the chance to earn daily virtual currency tcoin rewards for interacting, gaming, streaming music & watching what they love; premium prizes in the daily Bid n'Win competition, & fun tools & stickers for sharing & editing their favourite shows, music and games.

OONA's free ad-supported, next generation virtual entertainment platform is a first of its kind. - It consolidates the most popular apps with live TV, SVOD, TVOD, music, games and YouTube channels in a singular platform operating on iOS and Android smartphones, Android TV and Smart TV applications. Using cutting-edge user engagement technology, OONA generates customized ads for viewers and rewards them with tcoins® as part of a loyalty reward system which can be redeemed for popular branded goods and services.

To enhance the user experience, OONA offers multiple features including a genie-in-the-app known as OONAbot, to personalize the user journey as well as unique tools and stickers to use while interacting with friends & family, and sharing on social media platforms. As the vMVPD of the future, OONA is set to revolutionize the way we consume content with much more control, flexibility and monetary benefits for consumers and businesses. Currently, OONA has over 250 subscription-free channels including movies, TV programs, live sports, documentaries, and local and global breaking news, which is available in Indonesia and set to roll out in 2019 Q3 across Vietnam, the Philippines, US, and the Middle East, with the US launch in late September.

References

[1]. Digital TV Research (2019). https://www.digitaltvresearch.com/ugc/press/254.pdf  Accessed 12 Sept. 2019.

[2]. O'Halloran, Joseph (2019). "Subs to keep rising but global pay-TV revenues set to fall." Rapid TV News.
https://www.rapidtvnews.com/2019091157264/subs-to-keep-rising-but-global-pay-tv-revenues-set-to-fall.html#axzz5zE6dSnHc   Accessed 12 Sept. 2019.