China set for slow pay TV growth

The Chinese pay TV is set to remain stagnant in the coming years, claims a new report.

The pay TV services revenue in China is expected to grow at a CAGR of 0.6% from US$35.1 billion in 2021 to US$36.2 billion in 2026, according to GlobalData. 

The report goes on to attribute this slow growth to a steady decline in cable TV subscriptions and drop in overall pay TV average revenue per subscription (ARPS).

It adds that cable TV subscriptions are expected to decline at a CAGR of 0.9% between 2021 and 2026 while the average monthly spend per pay TV account will drop from US$5.43 to US$5.20 over the same period.

China Broadcasting Network (CBN) will lead the overall pay TV services market throughout 2021-2026, driven by its monopoly in the cable TV segment.

Hrushikesh Mahananda, telecom analyst at GlobalData, said: “A steady rise in the adoption of OTT-based video services by consumers seeking new content is affecting the overall pay TV ARPS and revenue growth in China.

“IPTV will be the leading pay TV service platform in China in terms of subscriptions throughout the 2021-2026 period. This growth will be primarily driven by solid demand for multi-play bundled packages with integrated IPTV services and increasing fixed broadband penetration in the country that supports delivery of IPTV services.”