Digital television has now passed 50% of households worldwide and completely replaced analogue in some countries, reports IDATE in the twenty-fifth edition of the World Television Market. It forecasts that the global number of television households will exceed 1.5 billion in 2016, an increase of 9.4% in five years, with digital services reaching over 75% of households. The global market of services on connected televisions will reach €2.5 billion in 2016, forecasts IDATE. That represents just 1% of the global fixed video services market.
“It is particularly important to put into context the transformational movements in television, which have never been greater than they are today, in order to measure the revolution taking place,” writes Florence Le Borgne-Bachschmidt, head of the television and digital content practice at DigiWorld by IDATE.
Cable will the remain the main means of access but will gradually lose ground to satellite and IPTV, which will account for 30% and 7% of TV households respectively at the end of 2016.
Despite the development of hybrid television solutions, terrestrial broadcasting will continue to decline, with around a 26% share of the global market by 2016.
According to IDATE, global television industry revenue will be €340 billion in 2012. Perhaps surprisingly, IDATE predicts pay-television revenue will grow by 12% between 2012 and 2016, while it forecasts over 21% growth in advertising revenue and a 7% increase in public funding and licence fees.
The global market of services on connected televisions will reach €2.5 billion in 2016, forecasts IDATE. That represents under a fifth of the total over the top television market and about 1% of the global fixed video services market. IDATE does not expect to see the market really take of until 2015. It suggests that paid services will play a leading role in the development of connected television services, with paid services taking nearly 60% of the market for video services on connected television.
In 2016, IDATE forecasts that subscription video on demand services will account for 32% of the market, closely followed by advertising supported premium services with 31%. Other video on demand services will account for 27% while advertising supported short clips will represent 10%.
The United States will remain the largest market for connected television services, with North American accounting for 61% of the market. Europe will account for 38%, suggests IDATE, followed by Asia Pacific with 8% and Latin America with 3%.