The total pay TV services revenue in China is set to decline at a compound annual growth rate (CAGR) of 0.5%, from US$32.9 billion in 2020 to US$32.1 billion in 2025, due to the growing preference for over-the-top (OTT) video streaming services and falling pay TV average revenue per user (ARPU), according to GlobalData.
GlobalData’s “China Pay-TV Forecast Model” report reveals that cable TV subscriptions will decline at a CAGR of 7.6% over 2020–2025 due to widespread cord-cutting trend. Internet protocol television (IPTV) subscriptions, on the other hand, will grow at a CAGR of 5.8% over the same period.
“IPTV will be the leading pay TV service platform in China in terms of subscriptions during 2020-2025 and will account for 75% of the total pay TV subscriptions by the end of 2025. This growth will be primarily driven by the strong fiber-optic network penetration in the country that supports delivery of IPTV services. Furthermore, competitive pricing and bundled plans offered by major pay TV operators will drive IPTV subscription base over the forecast period,” said Akash Jatwala, Senior Research Analyst of Telecoms Market Data and Intelligence at GlobalData.
“China Mobile will remain the leading pay TV service provider over 2020-2025, supported by its strong foothold in the IPTV segment. The operator’s leadership position can be attributed to its acquisition of fixed operator China Mobile Tietong and rapidly deploying fiber-optic network, which enables it to deliver high quality VOD services through Mobaihe set-top box to attract new subscribers,” Jatwala added.
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