Traditional TV & Home Video - NAFTA

In NAFTA, revenue in the Traditional TV & Home Video market market is projected to reach US$162.70bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -2.03%, resulting in a projected market volume of US$146.80bn by 2029.
The average revenue per user (ARPU) in NAFTA is expected to amount to US$501.40.
In global comparison, most revenue will be generated the United States, with a forecast of US$146.60bn in 2024.
The number of TV Viewers in NAFTA is expected to amount to 336.2m users by 2029.
User penetration in the Traditional TV & Home Video market market in NAFTA is expected to be at 63.6% in 2024.
The average revenue per TV user (ARPU) in the Traditional TV & Home Video market market in NAFTA is projected to amount to US$501.40 in 2024.
In the United States, traditional TV and home video markets are facing a decline as streaming services increasingly dominate consumer preferences and viewing habits.

Definition:

The Traditional TV and Home Video market involves the distribution and consumption of audiovisual content through conventional broadcast television channels and physical media formats like DVDs and Blu-ray discs. It encompasses the production, broadcasting, and viewing of television programs, movies, and other video content within households. Additionally, the market includes advertising placements within television programming and the collection of public TV Licence fees to support public service broadcasting networks, contributing to the diverse landscape of content delivery and revenue generation within the industry.

Structure:

The traditional TV and home video market comprises several key components, including pay TV services, physical home video sales, traditional TV advertising, and public TV Licence fees. Pay TV services involve subscription-based access to premium television channels and content, often delivered through cable, satellite, or internet-based platforms. Physical home video sales encompass the distribution of movies and TV shows on DVDs, Blu-ray discs, and other physical media formats for consumer purchase or rental. Traditional TV advertising involves the placement of commercials within broadcast television programs, generating revenue for broadcasters and advertisers alike. Public TV Licence fees refer to the mandatory charges imposed on households to fund public service broadcasting networks and channels. Together, these elements form the backbone of the traditional TV and home video market, catering to diverse viewer preferences and consumption habits.

Additional Information:

The market comprises revenues, ad spendings, viewers, average revenue per user, and penetration rates. Revenues are generated through purchases. Key players in the market are companies, such as NBCUniversal, CBS Corporation, and The Walt Disney Company.

Pay-TV subscriptions such as DirectTV, AT&T TV, and Sky
Physical home video such as DVD & Blu-ray sales
Traditional TV advertising such as commercial breaks
Public TV license fees such as BBC License in the UK and the Rundfunkbeitrag in Germany

OTT (Over-the-top content) services such as Netflix, Hulu, iTunes, and Pluto.tv
Public license fees collected in the form of a tax such as income tax in the Nordic countries
DVD & Blu-ray rental

The Traditional TV & Home Video market in NAFTA has experienced significant growth and development in recent years.

Customer preferences: Customers in NAFTA countries have shown a strong preference for traditional TV and home video content. Despite the rise of streaming services and digital platforms, many consumers still enjoy the experience of watching TV shows and movies on their televisions at home. This preference is driven by a desire for high-quality visuals and immersive sound, as well as the convenience of accessing a wide range of content in one place. Additionally, customers in NAFTA countries value the ability to watch live television and sports events, which are often not available on streaming platforms.

Trends in the market: One of the key trends in the Traditional TV & Home Video market in NAFTA is the increasing demand for high-definition (HD) and ultra-high-definition (UHD) content. As technology continues to advance, more and more consumers are investing in HD and UHD televisions, which offer superior picture quality and clarity. This has led to a growing demand for content that is compatible with these types of displays. As a result, broadcasters and content providers in NAFTA countries are increasingly producing and distributing content in HD and UHD formats to cater to this demand. Another trend in the market is the growing popularity of video-on-demand (VOD) services. While traditional TV remains popular, many consumers are also turning to VOD platforms to access a wider range of content and enjoy the flexibility of watching their favorite shows and movies at their own convenience. This trend has been further accelerated by the COVID-19 pandemic, which has led to an increase in at-home entertainment and a greater reliance on streaming services.

Local special circumstances: Each country in NAFTA has its own unique characteristics and circumstances that impact the Traditional TV & Home Video market. For example, in the United States, the market is highly competitive, with a large number of broadcasters, cable providers, and streaming services vying for customers' attention. This has led to a wide variety of content options and pricing plans for consumers to choose from. In Canada, on the other hand, there are regulations in place that require broadcasters to allocate a certain percentage of their programming to Canadian content. This has led to a strong emphasis on local programming and the promotion of Canadian culture in the Traditional TV & Home Video market.

Underlying macroeconomic factors: The growth and development of the Traditional TV & Home Video market in NAFTA can be attributed to several underlying macroeconomic factors. Firstly, the strong economies of the NAFTA countries have allowed consumers to afford high-quality televisions and home video equipment, as well as the subscription fees for cable and streaming services. Secondly, the increasing availability of high-speed internet and advancements in technology have facilitated the delivery of high-quality video content to consumers' homes. This has made it easier for broadcasters and content providers to distribute their content and reach a wider audience. Lastly, the cultural significance of television and home video in NAFTA countries has also contributed to the growth of the market. Television has long been a central form of entertainment and a way for people to connect with each other and their communities. This cultural significance has created a strong demand for traditional TV and home video content, despite the rise of digital platforms.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective segment. This spending factors in discounts, margins, and taxes.

Modeling approach / Segment size:

The segment size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant segment. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.