Global variations in DTH market will combine to earn $130BN by 2023
Rebecca Hawkes
| 13 May 2014
Almost US$130 billion is expected in direct-to-home (DTH) satellite TV subscriber revenue by 2023, however there is a wide divergence in industry trends within the developing world, according to a new NSR report.

"In [DTH] markets like India, revenue growth will be driven by a rise in ARPUs. Granted, subscriber growth will be healthy, but the big money maker will be quadrupling ARPUs from a low base in the next decade," says Alan Crisp, NSR Analyst and report co-author.

"Conversely, markets like Sub-Saharan Africa will see falling ARPUs as millions of low-income subscribers sign onto regional platforms offering more affordable content than the pan-continental behemoths. Net result? Rising revenues from more subscribers, not from higher ARPUs. Simply put, these are completely opposite development trends."

When looking at the South Asian market, the need for consolidation was often cited. This, says Blaine Curcio, NSR analyst and report lead author, "compares to the Sub-Saharan Africa region relatively similar in terms of level of economic development in which we often heard the market is opening up, with regional and national players challenging the market leaders and increasing competition.

The Global Direct-to-Home (DTH) Markets, 7th Edition, forecasts that Sub-Saharan African DTH penetration will reach 23% (over 120 million households) by 2023 from 13% in 2013.

Markets like Russia are seeing a big decline in ARPUs made up for by huge subscriber gains in a similar manner to the DTH market in India, added Curcio.

Major DTH growth over the coming years will come from developing regions, but mature markets such as North America and Western Europe will also reap the rewards of rising ARPUs from emerging technologies such as UltraHD and an increase in HD content, forecasts the market research company.