A surge in the adoption of OTT video services in Singapore will pull down the overall pay-TV service revenues by 1.45% CAGR between 2020 and 2025, says data analytics company GlobalData.
An analysis of GlobalData’s Singapore pay-TV Forecast Pack reveals that pay-TV household penetration will drop by more than five percentage points from 39.3% in 2020 to 33.8% in 2025. Comparatively, pay-TV household penetration in the overall Asia-Pacific (APAC) region will increase from 74.8% to 75.6% during the forecast period.
Following StarHub’s successful migration of its cable TV subscribers to IPTV services in 2019, IPTV now represents the only platform in the pay-TV services market in Singapore. The overall IPTV subscriptions will however decline at a 2% CAGR over the forecast period, reaching 0.63 million in 2025. This is primarily due to the growing adoption of OTT-based video services such as Netflix and Amazon Prime.
Singtel will remain the leading player in Singapore’s pay-TV services market through the forecast period supported by its discounted IPTV plans.
Sree Venkatesh, Senior Analyst of Telecoms Market Data and Intelligence at GlobalData, says: “With the increasing shift in TV viewership from traditional platforms to OTT video services, the pay-TV services market in Singapore is bound to decline further through the forecast period and operators have no choice but to offer services at discounted prices to stay relevant in the market.”