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Global Television Broadcasting Industry Analysis

The world broadcasting and cable TV market (one of the major segments of the telecommunication services industry) expanded by almost 6% in 2010 to exceed $373,000 million, according to MarketLine. The market is expected to reach almost $475,000 million by 2015. TV advertising accounts for the largest market segment at just under 48% of overall market value. Americas accounts for almost 45% of the world broadcasting and cable TV market. The industry is only moderately competitive due to high differentiation and restricted buyer power.

The global digital broadcasting industry has almost 50 million subscribers, with 30% market growth between 2010 and 2011, reports Budde Comm. In developed markets, the tendency towards digital broadcasting is widespread, boosted by digital TV and the introduction of digital FTA channels in Australia. In New Zealand, analogue TV was to be abandoned in 2015 or by such time as 75% of households had digital TV. Digital TV saturation is already at 80% of households, with a complete changeover expected to be accomplished before the end of 2013. The US market is seeing a move towards TV-on demand, fuelled by broadband networks. The Brazilian pay TV market is lead by companies such as Sky Brazil, Telesp, Embratel, Net Serviços, and Oi TV.

Key Market Segments

The world internet TV market is expected to surpass $81 billion by 2017, according to Global Industry Analysts. The market is fuelled by improvements in resolution and clarity, increasing numbers of available channels, and the need to run widgets through TV. Companies have to constantly carry out research and development to stay abreast of technological advances such as high definition images, surround sound, and multiple channels.

The TV industry is undergoing rapid change as governments increasingly switch from analog to digital, and consumers become increasingly versed in the latest technologies. Companies continue to adapt to keep up as software, hardware, and multimedia content combine. Internet TV is fast becoming the preferred choice of consumers, who can exercise greater viewing control than with traditional TV sets. The US and the EU are the two biggest regional markets for internet TV. The latter is adding countries such as Italy, Russia, Spain and other Eastern European countries to its efforts to build on the existing market base formed by the UK, Germany, and France.

Asia-Pacific is expected to record an impressive yearly growth rate of almost 60% through 2017. Key players operating in the global internet TV market include BBC, NBC, CNN, Fox News, Google, Hulu, Swarmcast, Canal+, AOL, Boxee, BT Group, Channel 5, Channel 4, China Telecom, Comcast, and Microsoft.

According to RNCOS, there will be close to 795 million mobile TV subscribers throughout the world in 2014, representing a near 45% increase in just three years, with streaming technology providing the market’s foundation. Recently, market growth has been fuelled by content streaming for viewers on the move.

The world mobile satellite TV market is expected to reach $11 billion by 2015, according to Global Industry Analysts. Demand for video content without restrictions of time or place is fuelling the market, which is benefiting from better content quality, widespread presence of mobile phone devices, and interoperable standards and technologies. Leading companies include AT&T, KVH, Nagravision, DISH Network, RaySat, DiBcom, and Alcatel-Lucent.

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Parent industry: Telecom
Related industries: Mobile Services, Fixed Line, VOIP, Internet Services

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