Pay TV in Africa to double in size

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Pay TV in Africa to double in size --

Tue, 16 Aug 2016 10:39

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Reportedly on Tech Central, the number of pay-television subscribers in Africa will reach 30 million by 2021, almost double 2015s 16 million, according to new research.

Data published by Dataxis suggests digital satellite pay-TV subscribers will reach 20 million in five years time, compared to eight million for digital terrestrial services.

The company estimates that TV households, which stand at 114 million in 2015, will reach 159 million in 2021 still far below penetration rates elsewhere in the world. The low TV penetration rate is attributed to various socioeconomic factors that hinder adoption, said Dataxis Africa research analyst Priscilla Tirvengadum.

Despite advances, statistics show that Africa still has a long way to go in terms of household TV penetration, she said. This low rate is explained mainly by lack of basic economic infrastructure like electricity. Moreover, poverty in developing African countries make it impossible for its citizens to afford television sets.

English-speaking Africa is forecast to drive much of the growth over the next five years. Total pay TV subscribers in Anglophone countries is expected to double from 10 million in 2015, while Francophone Africa will grow from three and a half million subscribers in 2015 to reach six million in 2021.

Satellite pay-TV subscribers in English-speaking countries reached eight million in 2015, and will grow to 12 million five years from now. South Africa-headquartered MultiChoice, which is owned by Naspers, remains the biggest pay-TV operator, followed by StarTimes and Zuku.

MultiChoice has been the key player in the Anglophone African pay-TV market since its launch in 1995. Despite facing competition from StarTimes and Zuku, MultiChoice continues to add new content and innovative services to maintain its appeal, said Tirvengadum.

In French-speaking Africa, France s Canal Plus Overseas is the dominant player.

Total pay-TV revenue was about US$ four billion in 2015 and is expected to climb to US$ six billion in 2021, with satellite contributing up to US$ five billion.

Digital migration, competition and cheaper terrestrial pay-TV packages will bring average revenue per user for broadcasters down in most African countries, Dataxis said.

Source: Tech Central

2016 NewsCentral Media

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