The Total Addressable Market (TAM) for Television Services was valued at USD 377.65 billion in 2022. It is projected to reach USD 590.90 billion by 2031, growing at a CAGR of 5.10% during the forecast period (2023-2031).
Television services include the ability to access music, videos, and news as well as other entertainment and informational content that TV service providers over a television set to broadcast. The broad-scale shift from traditional broadcasting to broadband broadcasting is currently occurring in the television industry. The television industry is moving away from broadcasting to the internet because viewers prefer on-demand video and audio content to traditional transmission. People are switching from cable and satellite television to over-the-top (OTT) and internet protocol television (IPTV) services, mainly due to the industry's rapid digitization. The COVID-19 pandemic epidemic also benefited the television services market, and there is a significant rise in the number of people watching television and listening to audio and video information.
Technological Developments in the Broadcast Sector and Rising Interest in Smart TVs
The introduction of technology in the broadcasting sector and the spike in demand for connected and smart TVs are two key factors driving the expansion of the TV services market. The manner that TV viewers take in television content has also changed over time. For instance, more and more TV households want regular services, high-definition visual quality, and convenient and affordable access to TV services. A new trend in TV broadcasting services predicted to increase demand for television services is the pairing of satellite television and the internet.
Additionally, satellite broadcasting technology is growing increasingly in popularity in the modern period. Millions of individuals worldwide get access to knowledge with only one beam. High dynamic range (HDR) TV is another innovation that has dramatically sped up the market's expansion in the TV sector. It is a TV with integrated support for at least one HDR format. High-quality displays and services on HDT TV are dependent on these formats. It is quickly gaining popularity because it offers stronger highlights and a broader spectrum of color depth for a punchier image. Furthermore, as more people watch content on OTT platforms like Netflix and Amazon, the introduction of smart TVs fundamentally alters consumer preferences for TV content.
Limited Digital Infrastructure and Digital Illiteracy
The expansion of the TV services market is anticipated to be constrained by the high percentage of digital illiteracy throughout the forecast period. This is explained by the fact that a lack of digital literacy restricts internet use and hinders the sale of linked or smart TVs, which has a detrimental effect on the expansion of the OTT TV services industry. According to government experts, 6.7 million people in France never used the internet due to a lack of digital literacy.
Another significant barrier to the IPTV market is the lack of digital infrastructure facilities for internet access. Additionally, the lack of access to computers and the internet, particularly in schools and colleges, causes a rise in digital illiteracy. For instance, only 21.3% of students have access to computers in the 596 government schools throughout 619 districts, according to the Annual Status of Education Report (ASER) 2018. As a result, it is projected that the sum of all these factors will be detrimental to market expansion.
Evolution of Television Technology
The rapid improvements in TV devices and related accessories, such as set-up boxes and TV displays, are expected to support the growth of the TV services market over the forecast period. The demand for TV services has been expanding as new TV technologies, including connected TVs, HDTVs, 4K TVs, and direct-to-home set-up boxes, have become more widely used. Such TV gadgets are anticipated to significantly contribute to the expansion of the global market thanks to technological advancements. As an illustration, 4K Ultra HD, commonly referred to as ultra-high definition or 4K, provides excellent video material and stunning resolution.
The global television services market is segmented by delivery platform, revenue model, and broadcaster type.
Based on the delivery platform, the global market is bifurcated into digital terrestrial broadcast, satellite broadcast, cable television broadcasting services, internet protocol television (IPTV), and over-the-top television (OTT).
The cable television broadcasting services segment is the highest contributor to the market and is estimated to grow at a CAGR of 3.80% during the forecast period. The system that uses coaxial or fiber-optic cable to distribute TV signals is called cable television. Cable operators get these channels from various satellites, while TV network firms beam their TV programs to cable operators via satellites. They create a bouquet of channels by combining this with programming obtained from other sources, including broadband connections and local channels, and then distributing it to households through a coaxial cable network that is either buried beneath the ground or suspended over utility poles.
The shift to digital terrestrial will significantly impact community broadcasting. Digital broadcasting requires audiences to have digital reception equipment in addition to changing the way broadcast signals are sent out. The demand for connected and smart TVs has significantly impacted the demand for digital terrestrial broadcasting services. Additionally, digital terrestrial broadcast allows transmitting up to 10 digital services over a single frequency while increasing the channel capacity to 40 Mbit/s. Household TVs have been embracing it more and more because it increases the capacity of broadcast transmission networks by enhancing spectrum efficiency and can consume less energy in the transmission networks.
Due to its many advantages, including additional channel options and simple troubleshooting, satellite TV is becoming increasingly popular among TV households. Additionally, satellite TVs are getting more compact and sophisticated, which makes installation simpler. They are more advantageous to deploy in several isolated geographic locations where cable or terrestrial television services would not be accessible. However, the development of satellite television services is expected to be hampered by the location of the residence and restrictions on homeowners' ability to affix satellite dishes to the property.
Broadband internet is used to deliver internet television services in an environment known as internet protocol television. Users can interact with service providers by requesting or demanding certain TV content, including movies and online series. Due to increased internet usage, easy access to the internet infrastructure, and a rise in the demand for digital content, IPTV has become increasingly popular in developing countries and accepted by TV households. The ease of integrating IPTV with other IP-based services is one of its main advantages over conventional television formats.
Based on the revenue model, the global market is bifurcated into subscription and advertisement.
The subscription segment owns the highest market share and is estimated to grow at a CAGR of 5.10% during the forecast period. Due to several advantages for both consumers and service providers, such as offering flexibility in terms of billing and payment, turning fixed costs into variable costs, providing ease of distribution, and acting as a reliable and consistent revenue stream, the subscription or pay TV channel segment has been experiencing significant growth during the forecast period. OTT platforms like Netflix and Amazon Prime offer subscriptions as some instances of subscription-based business strategies.
Organizations and corporations mostly use television commercials to raise awareness of their products. TV advertisements are commonly employed because of their affordable cost and extensive geographic and demographic reach. Additionally, any commercial may reach every audience daily with schedules and channels, including cartoons, celebrities, chat, sports, soaps, news, movies, reality, and prime-time programming.
Based on broadcaster type, the global market is bifurcated into public and commercial.
The commercial segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.60% during the forecast period. The market for commercial TV services is expanding thanks to the rising demand for commercial commercials from businesses and corporations and the popularity of digital advertising. Additionally, the increase in TV watchers and households has been a significant driver of the need for advertising, which has boosted the market for commercial TV services. Additionally, the growth in pay TV subscriptions has increased the revenue of the companies that offer commercial TV services. Pay or subscription television (STY) can provide extra and specialized channels or programming for a monthly or annual subscription fee.
Public broadcasting is becoming increasingly popular among TV viewers because it helps people learn new things, broaden their perspectives, and help them understand the world and themselves. Public broadcasting's primary goal is to promote the creation and dissemination of nonprofit content and services, focusing on children's needs and interests, core public media communities, diverse audiences, unserved & underserved groups, and the general public. The primary purpose of public broadcasting is to disseminate government plans, policies, and agendas. Additionally, students who live in remote places can access e-classrooms through public TV channels.
The global television services market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
North America Dominates the Global Market
North America is the most significant global television services market shareholder and is expected to grow at a CAGR of 4.50% during the forecast period. In 2021, North America dominated the television services market and is anticipated to continue during the forecast period. Factors driving the growth of the North American television market include the rise in popularity of ultrahigh-definition display TV, linked TVs, and dedicated TV programming available via subscription, such as Pay TV and OTT TV. IPTV and cable TV have significantly increased their market shares in the US. This is primarily due to the existence of large TV broadcasting companies, the accessibility of inexpensive high bandwidth connections, and the high percentage of digital literacy.
Asia-Pacific is expected to grow at a CAGR of 6.30% during the forecast period. The markets for television services in China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific are all investigated in the market analysis. After North America, Asia-Pacific has had the second-largest market share for television services. Nearly half of the Asia-Pacific television services market comprises China and India. The rise greatly influences the expansion of the television service market in Asia-Pacific in TV households, the addition of smart features to home TVs, and technological advancements in TV displays. Due to the accessibility and affordability of internet services, people are increasingly adopting them for entertainment on TVs and cell phones.
Europe is expected to grow significantly over the forecast period. The expansion of the television services industry in Europe is anticipated to be boosted by an increase in the number of subscriptions for OTT TV platforms and pay TVs. The popularity of Netflix services is also increasing significantly in Germany, which contributes to the expansion of the European television services market. Due to the growing popularity of OTT services and the rising demand for IP TV services, Europe has been holding a sizable portion of the global market for television services and is predicted to keep doing so during the projection period. Most people still watch broadcast television, especially public service broadcasting, but its use is declining as people switch to online alternatives.
Latin America held a sizeable portion of the global market for television services in 2021 and is predicted to do so again over the forecast period. This is primarily attributable to a rise in pay TV subscriptions and the popularity of satellite dish TVs among customers. Furthermore, the expansion of the television services market in LAMEA has been significantly aided by the rise in internet penetration and demand for on-demand video content.
The global television services market's major key players are
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