Global Cable TV Decline Accelerates as Streaming Services Dominate

The worldwide shift away from traditional cable TV is gaining momentum, driven by the increasing popularity of streaming services.

Experts predict that 2023 will mark the beginning of an annual decline in pay TV penetration globally, signaling a significant change in consumer viewing habits.

Ampere Analysis reveals that by 2025, every region is expected to experience a drop in pay TV penetration, with a projected global decline of nearly four percentage points by 2028.

Global Cable TV Decline Accelerates as Streaming Services Dominate

Notably, North America has seen a drastic reduction, falling from 84% in 2009 to just 45% in 2023.

The primary factors contributing to this decline are the soaring costs of traditional cable subscriptions and heightened competition from subscription video-on-demand services.

The price tag for pay TV can be a hefty $90 per month, according to Rory Gooderick, a senior analyst at Ampere Analysis.

Despite this decline, pay TV continues to generate substantial annual revenue per user, exceeding $1,100 in North America, the highest among all regions.

However, the decline is not uniform globally.

While North America and Latin America, led by Brazil, are driving the downturn, Asia Pacific and Europe are experiencing growth in pay TV penetration.

Global Cable TV Decline Accelerates as Streaming Services Dominate

This growth is attributed to the prevalence of low-cost Internet Protocol Television (IPTV) services bundled into broadband packages, offering an affordable alternative for consumers.

Ampere Analysis suggests that despite the shrinking reach of pay TV, cable and satellite platforms will remain influential in the TV landscape, serving as crucial distribution partners for streaming products.

The recent deal between Disney and Spectrum exemplifies this, as it includes bundling Disney+ and ESPN+ with Spectrum subscriptions,

showcasing the potential for pay TV providers to transition into streaming aggregation.

In summary, the evolving landscape presents challenges for traditional cable TV, but opportunities arise through strategic bundling,

allowing providers to adapt to changing consumer preferences and stabilize their subscriber base.

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