29 Sep 2020
Posted in Technology
Switch to OTT platforms to negatively affect pay-TV service revenues in Hong Kong in 2020, says GlobalData
Shift in viewership from traditional pay-TV services to OTT-based video streaming platforms seen during the COVID-19 led lockdown period will negatively impact pay-TV service revenues in Hong Kong during 2020, according to GlobalData, a leading data and analytics company.
GlobalData’s Hong Kong Telecom Operators Country Intelligence Report reveals that the total pay-TV services revenue in Hong Kong is set to grow at a sluggish compound annual growth rate (CAGR) of 0.8% during 2020-2025, increasing from US$568.1m in 2020 to US$590.7m in 2025. However, steady rise in demand for IPTV services that yield higher average revenue per user (ARPU) will help the overall pay-TV market to stay afloat and avoid falling into the red over the forecast period 2020-2025.
Deepa Dhingra, Telecom Analyst at GlobalData, says: “IPTV services will be the leading pay-TV technology through the forecast period in Hong Kong. The growth in IPTV subscriptions will be supported by the expansion of fiber-to-the-x (FTTx) network in the country, which facilitate delivery of IPTV services.
“PCCW will remain the leading the pay-TV player in terms of pay-TV subscriptions in Hong Kong during 2020-2025 with its focus on offering promotional discounts on a wide range of pay-TV packages, which includes documentaries, movies pack, drama and entertainment packs and sports pack. It is also offering discounts up to 50% on add-on selected channel packages.”