IPTV to drive pay TV revenue growth in South Korea

Despite a global decline in pay TV growth, the South Korean market is set to experience marginal growth in the coming years. 

According to GlobalData, pay TV services revenue in South Korea is expected to grow marginally at a compound annual growth rate (CAGR) of 1.14%, from US$6.5 billion in 2021 to US$6.9 billion in 2026.

The research firm attributes this growth to the IPTV segment, which it says will be the only pay tv service segment to achieve revenue growth. It notes that improved fixed broadband infrastructure in the country will lead to rising adoption of multiplay packages inclusive of IPTV, and that this will see a steady rise in ARPU and revenue growth.

DTH and cable TV services meanwhile will see their revenues decline.

Harendra Sharma, telecom analyst at GlobalData, said: “KT Corp will lead the pay TV services market in South Korea in terms of subscriptions during the forecast period. Its leadership in the pay TV market is primarily due to its monopoly in the DTH segment and strong position in the IPTV segment, where it accounts for the largest share. 

“KT and other major operators such as LGU+ and SK Telecom are offering discounted multiplay bundled plans with IPTV to increase their subscriber base and strengthen their position in the market.”