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Who benefits as Global DTH Satellite TV revenue set to shed $ billions?

Global DTH revenue set to shed $ billions says new report

Rethink Technology Research’s Rethink TV service has launched a new report which shows how Direct to Home satellite TV (DTH) subscriber falls will accelerate and spread from North America to Europe and eventually to the Far East. Where subscribers numbers rise there will be falls in ARPU.

The new report is entitled, “Who benefits as Global DTH revenue set to shed $ billions – Forecast to 2024” and it is part of the Rethink TV series of forecasts, sold by Rethink as a subscription service.

The decline in DTH will turn out to be terminal, and yet it all began when cable TV began to churn around 2010, a story which spread to the US satellite operators a few years later.

Today the exodus is gathering speed and starting to spread to Europe, leaving operators scrambling to mop up their departing customers via the life rafts of low ARPU OTT.

This makes it impossible to maintain existing high ARPUs at historical levels, and the wheels have just come off for AT&T in the US as DirecTV Now, its stand-alone OTT is seen as an alternative to the main DTH service – both have now been losing subs after initial gains and investors are starting to ask if this is a permanent trend.

What is still true is that DTH continues to thrive where there are no competitive alternatives for premium content, or where one operator has hogged the most sought-after sports rights.

And in some parts of the world DTH continues to provide an engine of growth for pay TV – but only in developing markets and only for a short while longer, notably India.

Latin America with it artificially high pay TV ARPU looks less like India and more like the US and sustaining ARPU there will be a thankless challenge.

DTH saw rapid growth in pay TV until 2014 in Latin America, on the back of an expanding middle class in key markets. Now it is set for a period of decline and falling ARPU as OTT services continue to take off there and provide a direct threat.

This report looks at multiple geographies, the Americas, Europe, and developing countries in Asia Pacific, Middle East and Africa along with Oceania.

In Europe the picture is more mixed, with the decline well advanced for some operators such as France’s Canal+, whose base will be halved by 2024 from 2018. Some Eastern European markets have profiles more like developing countries, most notably Cyfrowy Polsat in Poland, set to continue gaining subs for at least the next few years.  However, even these operators will run out of rope towards the end of the forecast.

In Asia Pacific DTH subscriber growth will be sustained throughout the period but with signs of flattening later around 2024. We anticipate some Asia Pac operators that are still growing subs now will reach a turning point during the forecast period with decline setting in just before 2024.

Squaring all the regions together there is still a global rise in DTH numbers,  but this will come to an end during 2020, and move on to an accelerating decline as more and more DTH operators in Asia Pacific pass their summit.

Who should read this report and what should they get out of it?

People have been trying to pretend that Direct To Home paid satellite TV delivery (DTH) is not going away for years, but our research shows definitively how fast subscribers and revenues will fall, and paints the picture of where that money will be spent instead.

It’s pretty clear from the title “Who benefits as Global DTH revenue set to shed $ billions – Forecast to 2024” that a wide slice of the video economy will gain from the demise of DTH – be they rival pay TV services, fresh OTT live and SVoD services or broadband services and video services from MNOs.

In the meantime most pay TV operators rushing to introduce their own OTT video services, which in turn is accelerating the trend. This will affect every single technology provider to DTH operations; it will affect all pay TV software services from video QoS to Android TV to billing services in every part of the world.

C suite individuals at pay TV players, technology suppliers, investors and satellite platforms should all read this report.

This report will;

Show how rapidly DTH revenues will fall

Show where that money is most likely to be spent in future

Show which DTH markets will slides fastest, and tell you why

This report will help you plan and price a rival pay TV or OTT strategy

Companies mentioned in this report:

Amazon Prime Video, America Movil, Astro All Asia Networks, AT&T, BBC, BeIN Media Group, Broadcasters’ Audience Research Board, CanalSat, Cignal, Claro TV, Cyfrowy Polsat, DigiTurk, DirecTV Now, Dish Network, Disney, Eutelsat, Facebook, Federal Communications Commission, Fetch TV, FIFA World Cup, Foxtel, Intelsat, Islamic Republic of Iran Broadcasting, Kwese, Mediaset, Movistar, MultiChoice, nc+, Netflix, NewsCorp, Oi TV, OneWeb, Orange, RAI, Sky, Sky Life, SKY PerfecTV!, SES, SFR, Sling TV, Space X, Star India, Tata, Telefonica, Tricolor, TrueVisions, Vrio, World Trade Organization, YouTube Premium.

For more information contact:

Natalia Szczepanek (Client Relations and Marketing Manager): [email protected]

Office Phone: +44 (0)1179 257019

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Contents 2

Graphs and Tables 3

Introduction—Operators rush to OTT life raft 4

Americas lead DTH decline 7

North America 7

Latina America 9

Europe to catch up on DTH slide 10

Asia Pacific and Africa : Last stand for DTH 14

The odd Asian 4—China, India, Turkey, Iran 15

Oceania—Netflix hammers DTH 17

Poor pickings for DTH in wealthy Far East 18

DTH dominates developing Far East 20

DTH unites and divides Arab Nations 21

DTH harvests Africa’s first good pay TV crop 23

Conclusion—Platform operators rush from DTH to networks 24

Methodology 28

Rethink TV: Forecasting disruption in video 29

Contributors and Contacts 30

About Rethink Technology Research 31

North America DTH Subs 2018-2024 4

Global DTH Subs 2018 –2024 6

Americas DTH subs 2018—2024 8

Americas DTH Revenues 2018—2024 9

Europe DTH subs 2018 –2024 10

Europe big 3 Subs 2018—2024 13

Europe big 3 Revenues 2018—2024 13

AsiaPac Subs and Revenues 2018—2024 14

India DTH subs 2018—2024 15

Decline sets in at SE Asia’s big 2 19

ME and N Africa DTH Subs and Revenues 2018—2024 22

DTH Africa Sub Sahara Subs and Revenues 2018—2024 23

Platform operators video revenue 2018—2024 24

Big 3 platforms video revenue as % total 2018—2024 25

DTH Subs Geographical Comparison 2018—2024 27