Julia Stoll
Research expert covering TV and video media
Pay TV worldwide - statistics & facts
Pay TV, which refers to subscription-based cable or satellite television services, has long been one of the leading sources for news and entertainment worldwide. In recent years, however, the wave of technological advancements, over-the-top (OTT) video content, and online streaming services have challenged and transformed the global pay TV industry like never before. Global pay TV revenue dropped from 186 billion in 2019 to 151 billion U.S. dollars in 2022, and according to the latest projections, this downward trend is unlikely to reverse in light of the proliferation of on-demand content. But while the streaming revolution is visibly accelerating cord-cutting in mature digital markets, pay TV is thriving in other parts of the world. In 2021, the number of pay TV subscribers worldwide reached a record one billion, and moderate growth is forecast for at least another six years.
Has pay TV outlived its usefulness?
The pay TV industry faces significant challenges and competition in digitally developed markets such as Europe or North America. Fueled by the ever-increasing availability and affordability of OTT media and subscription video-on-demand (SVOD) services, viewers are gradually canceling their cable or satellite subscriptions in favor of more flexible video entertainment options. In effect, the number of pay TV households in the United States has steadily decreased over the past years. The U.S. pay TV penetration rate fell from 87 to 66 percent over the past decade, bringing along sharp revenue declines and subscriber losses for pay TV providers nationwide. To combat subscriber churn, many pay TV providers consider the integration of OTT services into their service portfolios.Key markets for TV industry growth
While a transition from linear TV to internet-based alternatives is well underway in some regions, audiences in emerging digital markets such as Latin America, Africa, and the Asia-Pacific region are still embracing the format. The number of pay TV subscribers in Latin America, for example, is forecast to remain mostly unchanged in the years to come. Arguably the most impactful market for global TV subscription and revenue growth is Asia: By 2027, the number of pay TV subscriptions in the Asia-Pacific region is set to increase by 26 million, with China and India accounting for the largest share of subscriptions. China and India also reached the highest pay TV subscriber numbers worldwide, followed by the United States. But smaller countries such as Vietnam and the Philippines experience the most rapid increase in pay TV adoption. What the future of traditional linear television will look like in these and other markets will largely depend on broadcast innovation, digital inclusion, and the ever-increasing range of home entertainment options.
