Traditional TV & Home Video - Portugal

In Portugal, revenue in the Traditional TV & Home Video market market is projected to reach US$1.14bn in 2024.
Revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 0.44%, leading to a projected market volume of US$1.16bn by 2029.
The average revenue per user (ARPU) in this market is anticipated to amount to US$131.30.
In a global context, the majority of revenue will be generated the United States, which is projected to reach US$146.60bn in 2024.
The number of TV viewers in Portugal is expected to reach 8.5m users by 2029.
User penetration in the Traditional TV & Home Video market market in Portugal is anticipated to be at 84.7% in 2024.
Additionally, the average revenue per TV user (ARPU) in the Traditional TV & Home Video market market in Portugal is projected to amount to US$131.30 in 2024.
In Portugal, the traditional TV and home video market is experiencing a gradual decline as streaming services gain increasing popularity among consumers.

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 Portugal has been experiencing significant changes and developments in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to the evolution of this industry.

Customer preferences: In Portugal, there has been a shift in customer preferences towards digital streaming services and online video platforms. Consumers are increasingly opting for on-demand content, allowing them to watch their favorite shows and movies at their convenience. This change in preference is driven by the convenience and flexibility offered by digital platforms, as well as the wide range of content available.

Trends in the market: One of the key trends in the Traditional TV & Home Video market in Portugal is the growth of subscription video-on-demand (SVOD) services. Providers such as Netflix and Amazon Prime Video have gained significant popularity among Portuguese consumers, offering a vast library of content at affordable prices. This trend is expected to continue as more streaming platforms enter the market and compete for subscribers. Another trend in the market is the increasing adoption of smart TVs and connected devices. Portuguese consumers are embracing the convenience of streaming content directly on their televisions, without the need for additional devices such as set-top boxes or DVD players. This trend is driven by the growing availability of smart TVs in the market, as well as the improved internet connectivity infrastructure in Portugal.

Local special circumstances: Portugal has a relatively high internet penetration rate, with a large portion of the population having access to high-speed internet connections. This has facilitated the growth of digital streaming services in the country, as consumers can easily access and stream content online. Furthermore, the Portuguese government has been actively promoting digitalization and investing in the development of digital infrastructure, further supporting the growth of the Traditional TV & Home Video market.

Underlying macroeconomic factors: The overall economic stability and disposable income levels in Portugal have also played a role in the development of the Traditional TV & Home Video market. As the economy has improved in recent years, consumers have had more discretionary income to spend on entertainment. This has contributed to the growth of subscription-based services and the adoption of new technologies in the market. In conclusion, the Traditional TV & Home Video market in Portugal is evolving rapidly due to changing customer preferences, the emergence of new trends, local special circumstances, and underlying macroeconomic factors. The shift towards digital streaming services, the adoption of smart TVs, and the government's support for digitalization are all contributing to the growth of this market. As technology continues to advance and consumer behavior evolves, the Traditional TV & Home Video market in Portugal is expected to continue its upward trajectory.

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.