The pay-TV services revenue in China is expected to grow at a sluggish compound annual growth rate (CAGR) of 0.6% from US$35.1 billion in 2021 to US$36.2 billion in 2026, due to a steady decline in cable TV subscriptions and drop in overall pay TV average revenue per subscription (ARPS), according to data and analytics company GlobalData.
An analysis of GlobalData’s “China Pay-TV Forecast” indicates that cable TV subscriptions are expected to decline at a CAGR of 0.9% between 2021 and 2026, while the average monthly spend per pay TV account will drop from $5.43 to $5.20 over the same period.
“A steady rise in the adoption of OTT-based video services by consumers seeking new content is affecting the overall pay-TV ARPS and revenue growth in China,” commented Hrushikesh Mahananda, Telecom Analyst at GlobalData.
“IPTV will be the leading pay TV service platform in China in terms of subscriptions throughout the 2021-2026 period. This growth will be primarily driven by solid demand for multi-play bundled packages with integrated IPTV services and increasing fixed broadband penetration in the country that supports delivery of IPTV services,” Mahananda added.
China Broadcasting Network (CBN) will lead the overall pay TV services market throughout 2021-2026, driven by its monopoly in the cable TV segment. “Within the IPTV segment, China Mobile will lead given its robust focus on enhancing its content by strengthening the combined operation of big and small screen content and making a household data service portal consisting of digital cinema, broadband television and vertical content,” Mahananda concluded.