Traditional TV & Home Video - South Africa

In South Africa, revenue in the Traditional TV & Home Video market market is projected to reach US$3.25bn in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 4.07%, leading to a projected market volume of US$3.97bn by 2029.
The average revenue per user (ARPU) is anticipated to amount to US$70.24.
In a global context, the highest revenue will be generated the United States, which is expected to reach US$146.60bn in 2024.
The number of TV Viewers in South Africa is expected to reach 49.1m users by 2029.
User penetration in the Traditional TV & Home Video market market in South Africa is projected to be at 75.9% in 2024.
Furthermore, the average revenue per TV user (ARPU) in this market is expected to amount to US$70.24 in 2024.
In South Africa, the traditional TV and home video market is increasingly challenged by the rapid growth of streaming services, reshaping viewer preferences and consumption 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 South Africa has been experiencing significant growth and development in recent years. Customer preferences, market trends, local special circumstances, and underlying macroeconomic factors have all contributed to this positive trajectory. Customer preferences in South Africa have shifted towards digital entertainment platforms, such as streaming services and online video-on-demand (VOD) platforms. The convenience and accessibility offered by these platforms have resonated with consumers, who now have the option to watch their favorite TV shows and movies at their own convenience, without the limitations imposed by traditional TV schedules. This shift in customer preferences has led to a decline in traditional TV viewership and an increase in the adoption of digital platforms. Trends in the market reflect this shift towards digital entertainment. Streaming services like Netflix and Showmax have gained significant popularity in South Africa, offering a wide range of content to subscribers. These platforms have capitalized on the growing demand for personalized and on-demand content, providing users with a vast library of TV shows, movies, and documentaries. Additionally, the increasing availability of high-speed internet connections has further fueled the adoption of digital platforms, as consumers can now stream content seamlessly without buffering or interruptions. Local special circumstances in South Africa have also played a role in the development of the Traditional TV & Home Video market. The country has a diverse population with multiple languages and cultures, leading to a demand for content that caters to these specific preferences. Streaming services have recognized this demand and have started producing local content in different languages, appealing to a wider audience and further driving the growth of the market. Underlying macroeconomic factors have also contributed to the growth of the Traditional TV & Home Video market in South Africa. The country has seen an increase in disposable income and a growing middle class, which has resulted in higher consumer spending on entertainment and leisure activities. This has created a favorable environment for the expansion of digital platforms and the adoption of new technologies in the entertainment sector. In conclusion, the Traditional TV & Home Video market in South Africa is experiencing growth and development due to shifting customer preferences, the rise of digital platforms, local special circumstances, and underlying macroeconomic factors. As consumers continue to embrace digital entertainment and as the market becomes more diverse and competitive, the industry is expected to continue its upward trajectory in the coming years.

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.