By Jonathan Easton
The Australian pay TV market is set for steady decline in the coming years.
According to GlobalData, the total pay TV services revenue in the country will drop from US$2.4 billion in 2020 to US$2.1 billion in 2025, representing a CAGR of -2.6 per cent. The report says that this decline will come as a result of continued drops in cable TV and DTH subscriptions.
The firm predicts that cable TV and DTH subscriptions will decline at a CAGR of 10 per cent and 7 per cent, respectively, between 2020 and 2025 due to ever-increasing cord-cutting. This practice, along with a decline in ARPU levels across all pay-TV service segments will also hurt the overall pay TV revenues over the forecast period.
Telecom Analyst at GlobalData, Aasif Iqbal said: “Internet Protocol television (IPTV) will remain the leading platform to deliver pay-TV services in Australia and will see its subscriptions grow at a CAGR of 6.1 per cent between 2020-2025, supported by improving fixed broadband infrastructure in the country and growing adoption of multiplay packages with integrated IPTV services.
“Foxtel will lead the pay-TV market in terms of subscription in 2020 and will maintain its leadership in the segment through 2025 through its promotional discount offers.”