The Australian pay TV market is set for steady decline in the coming years.
According to GlobalData, the total pay TV services revenue in the country will drop from US$2.4 billion in 2020 to US$2.1 billion in 2025, representing a CAGR of -2.6%. The report says that this decline will come as a result of continued drops in cable TV and DTH subscriptions.
The firm predicts that cable TV and DTH subscriptions will decline at a CAGR of 10% and 7%, respectively, between 2020 and 2025 due to ever-increasing cord-cutting. This practice, along with a decline in ARPU levels across all pay-TV service segments will also hurt the overall pay TV revenues over the forecast period.
Aasif Iqbal, Telecom Analyst at GlobalData, said: “Internet Protocol television (IPTV) will remain the leading platform to deliver pay-TV services in Australia and will see its subscriptions grow at a CAGR of 6.1% between 2020-2025, supported by improving fixed broadband infrastructure in the country and growing adoption of multiplay packages with integrated IPTV services.
“Foxtel will lead the pay-TV market in terms of subscription in 2020 and will maintain its leadership in the segment through 2025 through its promotional discount offers.”