Pay TV industry to lose US$30 billion in revenue over five years

Global pay TV revenues are set to drop by US$30 billion over the next five years as cord cutting continues to prove decisive for the industry.

According to Digital TV Research, revenues will fall to US$143 billion in 2026 from US$173 billion in 2020. This follows a peak of US$201 billion in 2016, and comes despite the number of pay TV subscribers set to rise by 15 million during the period. 

The US will take the biggest hit, with its total dropping from US$80 billion in 2020 to US$57 billion in 2026, from a peak of US$104 billion in 2015. The US’s market share will also decline, from 52% in 2015 to 40% in 2015. 

The UK meanwhile will see revenues shrink from its 2020 total of US$6.3 billion to US$5.5 billion in 2026.

The only market set for growth in pay TV revenues is India, which is exploding across all aspects of the TV industry from pay TV to OTT. Its pay TV revenues will increase from the 2020 total of US$5 billion to US$5.6 billion in the next five years. 

Simon Murray, Principal Analyst at Digital TV Research, said: “Revenues will decline in 77 of the 138 countries covered between 2020 and 2026. The US will provide the most dramatic fall – by US$23 billion.”