Africa's pay-TV Market Growth-Rate Set To Lead Globally
A recent report has shown that subscription video-on-demand (SVOD) streaming services are not destroying the pay-TV industry as much as they are reported to be doing in South Africa and Africa because it has been found that significant growth is still on the cards for pay-TV businesses in Africa and the Middle East. This region’s pay-TV household penetration will increase rapidly over the next five years from 16%in 2017 up to an estimated 23% in 2022.
New research from GlobalData has revealed that video streaming services such as Netflix, Showmax and Amazon Prime Video have been hyped up to be more of a threat to the growth of pay-TV than they actually are in reality. According to the data and analytics company, the pay-TV market in Africa and the Middle East may be underdeveloped, but it is growing at an incredibly fast rate and should not be underestimated.
GlobalData predicts that this growth will continue in such a pace that Africa and the Middle East will grow much faster than all other regions globally in the upcoming years.
Companies like China's StarTimes, MultiChoice and some smaller regional pay-TV entities are in an ongoing battle against each other for total domination when it comes to getting into as many homes as possible.
Technology Analyst at GlobalData, Jonathan Bachrach declared that pay-TV is growing in the AME because the broad content portfolios are tailored to local audiences, and that is the reason for the continuous interest gained by the industry. The audience is catered to in their preferred languages such as French, Arabic and English. These languages are used in the broadcasting of particular sports programmes and other entertainment shows.
According to GlobalData, piracy of TV content is still one of the most significant problems facing pay-TV operators in AME because the trade of illegal decoders continues to rise and negatively impacts the financial standing of pay-TV operators.