Pay-TV revenues rocket in Sub-Saharan Africa

DetailsJoseph O'Halloran | 14 January 2015

A new report from Digital TV Research is predicting that the good times will roll for pay-TV in Sub-Saharan Africa.

digitalTV researchThe fourth edition of the Digital TV Sub-Saharan Africa report forecasts that pay-TV revenues in the region will reach $6.22 billion in 2020, up from $3.54 billion in 2014 and $1.92 billion in 2010. Excluding the key South Africa market, pay-TV revenues are projected to climb from $0.83 billion in 2010 to $1.73 billion in 2014 and onto $4.12 billion in 2020.

By this time the aforementioned South Africa and Nigeria will likely contribute more than half of revenues for the 34 countries covered. Second-placed Nigeria will more than double its revenues from $449 million in 2014 to $1,148 million in 2020.

In terms of platforms, satellite currently has an iron grip on pay-TV. The analyst calculated that the pay-TV universe in the region comprised 12.92 million subscribers at the end of 2014, of which 9.65 million were pay satellite TV and 2.81 million pay DTT. Digital TV Research expects the pay total will more than double to 27.95 million by 2020, with satellite TV contributing 16.21 million and pay DTT another 9.44 million.

"Three companies [Multichoice (DStv and GOtv), Canal Plus and StarTimes] accounted for more than 90% of pay TV subscribers in Sub-Saharan Africa by end-2014," noted Simon Murray, Principal Analyst at Digital TV Research and author of the Digital TV Sub-Saharan Africa report . "However, we have outlined plans for at least 30 major platform launches in 2015 throughout this report at least twice as many as in 2014."

Satellite also claimed 92% of 2014 pay-TV revenues, even though pay DTT services are beginning to emerge. The later is set to total $802 million in 2020, quadruple the expected 2014 total.