Global TV Market Revenue to Grow at a Steady Pace

  • IDATE
MONTPELLIER, FRANCE - At a time when video has become pervasive across all of our screens, most national TV markets are losing steam: shrinking viewership and pressure on advertising markets, especially in Europe. Although pay-TV seems to be holding its own, the fast-growing popularity of OTT offerings is shaking up the traditional pay-TV model, while the demise of physical media is virtually a foregone conclusion. This is according to IDATE in the latest edition of its “TV and New Video Services Market” report and database, delivering key data on this ever-changing market.

According to Florence Le Borgne, the report’s project manager, “If the decline of physical media now seems inevitable, television still has a chance to reinvent itself in a way that takes into account changes in viewer behavior and competition from new online vendors."

Accessing TV

According to IDATE, the number of TV households worldwide will reach 1.675 billion in 2018 (+9.6 percent in 5 years), with the number of digital TV households worldwide being 1.542 billion in 2018, which translates into 92 percent of TV households

  • Cable will the remain the chief access channel (592.3 million households in 2018) but will gradually lose ground to satellite and IPTV which will account for 32.9 percent and 10.9 percent of TV households, respectively, at the end of 2018.

  • Despite the development of hybrid TV solutions, terrestrial TV should continue its decline on the first TV set and drop down to number three spot by 2018, with roughly 21 percent share of the global market.

  • The development of hybrid solutions that combine live programming on broadcast networks (terrestrial and DTH) and OTT video services over the open Web is a key variable in the future development of the various TV access modes, and may well shake up current trends.


TV Revenue

  • According to IDATE, the global TV industry’s revenue will come to €374.8 billion ($512 billion) in 2013 and €459.2 billion ($627 billion) in 2018.

  • Pay-TV revenue will grow by 21.3 percent between 2013 and 2018, or by an average 3.9 percent annually, to reach €220.2 billion ($300 billion) in 2018.

  • Ad revenue will enjoy even stronger growth of 27.3 percent between 2013 and 2018, to reach €201.1 billion ($275 billion) in 2018.

  • Public financing/licensing fees will continue to increase significantly (+7.7 percent in 5 years) to reach nearly €38 billion ($52 billion) in 2018.


Video Revenue
According to IDATE, physical media sales will total €16.3 billion ($22.2 billion) in 2018, when video on demand (VoD) revenue will reach €35.4 billion ($48 billion) in 2018, which is 90 percent more than in 2013.

  • This means that the global market will have shrunk to more than a quarter of what it was in 2013 (-27.2 percent).

  • Blu-ray will be the most common format and help temper plummeting physical media sales.

  • OTT video will continue to be the biggest earner, generating 51 percent of total revenue.

  • VoD will still be the dominant model on managed networks. It will generate €6.9 billion ($9.4 billion) in 2018 versus €2.3 billion ($ 3.1 billion) for subscription video on demand (S-VoD).


American OTT vendors Already Have a Solid Foothold in Europe
Netflix is already present in seven European countries: Britain, Ireland, the Netherlands, Denmark, Norway, Finland and Sweden. The service had 1.6 million subscribers in the UK and Ireland at the end of 2013.

  • LoveFilm was reporting 1.9 million subscribers in the UK and Germany at the end of 2013.

  • At the end of 2013, iTunes’ VoD rental service was available in close to 110 countries, and permanent downloads in 14 countries, chiefly in North America and Europe.


Comments

Read what others have to say, and share your own thoughts with the community.

2000 characters remaining
Advertisement

© 2020 Broadband Properties, LLC

Privacy Policy

Web Design and Web Development by Buildable