Global TV market revenue to increase 23% by 2018
Pascale Paoli-Lebailly | 31-01-2014
The number of TV households worldwide will reach 1.675 billion in 2018 (up 9.6% in five years), with the number of digital TV households worldwide reaching 1.542 billion in 2018, translating into 92% of TV households.
According to the latest edition of Idate's 'TV and new video services market' report and database, cable will remain the main access channel (592.3 million households in 2018) but will gradually lose ground to satellite and IPTV respectively which will account for 32.9% and 10.9% of TV households 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 the No 3 spot by 2018, with roughly a 21% share of the global market.
The fast-growing popularity of OTT offerings is shaking up the traditional pay-TV model, Idate points out.
While video has become pervasive across all of screens, most national TV markets are losing steam in terms of viewership and pressure on advertising markets, especially in Europe.
"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 behaviour and competition from new online vendors," said Florence Le Borgne, the report's project manager.
Idate forecasts that the global TV industry's revenue will reach €374.8 billion in 2013 and €459.2 billion in 2018. Pay-TV revenue will grow by 21.3% between 2013 and 2018, or by an average 3.9% annually, to reach €220.2 billion in 2018.
Ad revenue will enjoy even stronger growth of 27.3% between 2013 and 2018, to reach €201.1 billion in 2018. Public financing/licensing fees will continue to increase significantly (+7.7% in five years) to reach nearly €38 billion in 2018.
Idate also predicts physical media sales will total €16.3 billion in 2018, when video-on-demand (VOD) revenue will reach €35.4 billion in 2018, up 90% compared to 2013.
OTT video will continue to be the biggest earner, generating 51% of total revenue, and VOD will still be the dominant model on managed networks. It will generate €6.9 billion in 2018 versus €2.3 billion for subscription video-on-demand (SVOD).