IHS Markit: Pay-TV Subs Drop in 14 Markets During 2017
The cord-cutting trend that threatens the future of the global pay TV industry was not confined solely to the United States in 2017; total pay TV subscriptions also declined in 13 other markets. Customers cancelling their TV services in favor of online alternatives has been a key factor in declining subscriptions for cable, satellite, IPTV and pay digital-terrestrial TV around the world, according to business information provider IHS Markit.
The 13 markets in which total pay TV subscriptions declined last year, in addition to the US, were Brazil, Mexico, Hong Kong, Canada, Sweden, Denmark, Japan, New Zealand, Norway, Singapore, Israel, Venezuela and Ireland, IHS Markit said.
“The cord-cutting woes of pay TV companies in the US have been well publicized,” said Ted Hall, director of research and analysis for TV and video at IHS Markit. “Although the rest of the world has been broadly resisting the trend, other markets have also experienced pay TV subscription losses.”
Significantly, only 6 of the 14 markets affected in 2017 also experienced declines in pay TV revenue. In eight countries — the US, Brazil, Mexico, Sweden, Japan, New Zealand, Norway and Venezuela — operators were able to compensate for customer loses by increasing the amount of revenue generated by their remaining subscriptions. Even in the US, where 3.3 million pay TV subscriptions were lost in 2017, operators were able to collectively increase pay TV revenue by relying on upselling and price increases.