Due to a steady decline in cable TV subscriptions and drop in overall pay-TV average revenue per subscription (ARPS), the pay-TV services revenue in China is expected to grow at a sluggish compound annual growth rate (CAGR) of 0.6% from USD 35.1bn in 2021 to USD 36.2bn in 2026.
According to GlobalData, 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.
China Broadcasting Network (CBN) will lead the overall pay-TV services market throughout 2021-2026, driven by its monopoly in the cable TV segment, said GlobalData’s China Pay-TV Forecast.
Hrushikesh Mahananda, the Telecom Analyst at GlobalData, said: “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.”
“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 the delivery of IPTV services,” he added.
Hrushikesh concluded: “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.”