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The US - Pay TV (Television) market size is estimated to increase by USD 4.8 billion and grow at a CAGR of 1.31% between 2022 and 2027. The market's expansion hinges on various factors, notably the strong demand for live programming and sports, the independence from internet connectivity in pay TV services, and the affordability of packages offered by pay TV networks. However, challenges persist, such as the increasing popularity of online streaming platforms, strict regulatory measures imposed on pay TV services, and the evolving preferences of audiences.
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This market report extensively covers market segmentation by technology (satellite TV, cable TV, and IP TV), end-user (household and commercial), and type (postpaid and prepaid). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The satellite TV segment is estimated to witness significant growth during the forecast period. In the pay TV market in US, the satellite TV segment has faced severe challenges over the last decade. In addition, Dish Network and DIRECTV are key examples of satellite TV providers. Furthermore, due to exorbitant rates, long-term contracts, and limited flexibility when compared with streaming competitors such as Netflix, Hulu, and Amazon Prime Video, these companies struggled to retain users.
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The satellite TV segment was the largest segment and was valued at USD 33.36 billion in 2017. Moreover, cord-cutting was popular, with consumers preferring on-demand content and the convenience of streaming on many devices. In addition, satellite TV providers began broadening their services to respond to these contingencies, offering internet bundles and unique features. However, this technology segment remained highly competitive, and the long-term survival of satellite TVs faced uncertainty in the emerging digital entertainment sector. Hence such factors limit the demand for the satellite TV type and thereby drive the growth of the market during the forecast period.
The increasing adoption of pay TV by the residential segment will increase the market growth. Cable pay TV generally offers a stable and consistent signal, especially in areas with well-established cable infrastructure. This can be advantageous in regions where internet connectivity might be unreliable. In addition, cable TV is well-suited for viewers who enjoy real-time access to live programming, such as news broadcasts, sports events, and live shows. Moreover, the benefits of cable TV depend on individual preferences, viewing habits, and the specific circumstances of the residential area. Furthermore, with evolving technology, pay TV providers have been adapting their services to remain relevant and competitive, which might include offering digital features and on-demand content, which is expected to fuel the adoption of pay TV in the residential application segment, which in turn is expected to drive the growth of the market during the forecast period.
The Pay TV market in the US continues to evolve, offering a range of television services through various platforms such as cable, satellite, and phone companies. Subscribers gain access to premium television content including movies, sporting events, and news channels, enhancing their viewing experience. Pay TV services utilize encrypted formats to provide secure access to programming, while also offering local and exclusive content to cater to diverse audience preferences. Technological advancements, including fast internet and IPTV services, are reshaping the landscape, with emerging trends like artificial intelligence and machine learning enhancing viewer engagement. Both residential and commercial sectors benefit from pay-per-view offerings, ensuring quality content delivery through cable TV, satellite TV, and other mediums.
The surge in demand for live programming and sports stands out as a primary driver of market growth in the US television service sector. Pay TV services cater to this demand by offering access to live events, including sports matches, news broadcasts, and real-time shows. Cable TV, in particular, remains a preferred choice for sports enthusiasts seeking to watch games in real-time. Additionally, pay TV serves as a vital medium for delivering breaking news updates and exclusive coverage of events and entertainment. With certain sports leagues and events exclusively tied to pay TV networks, cable remains the go-to platform for accessing specific games and tournaments. Moreover, pay-per-view offerings, such as boxing matches, further contribute to revenue generation for providers. Overall, these dynamics contribute to the positive trajectory of the market.
A key factor shaping the market growth is the growing preference for real-time access to live programming, events, and news. The cable TV interface and channel lineup are familiar to many users, particularly those who have grown up with traditional television. In addition, this familiarity can make it more comfortable for individuals, particularly older generations. Furthermore, cable TV typically offers a straightforward channel-surfing experience, making it easy for viewers to find and switch between channels without needing to search through menus.
Moreover, unlike some streaming services that might need app installations, accounts, and device compatibility checks, cable TV is often as simple as turning on the TV and selecting a channel. In addition, streaming platforms sometimes come with various settings and customization options. Cable TV, on the other hand, requires less technical know-how to operate. Furthermore, the ease of use associated with cable TV remains a valuable advantage, particularly for individuals who prefer a straightforward and intuitive television experience, which may have a positive impact on the growth of the market during the forecast period.
Online streaming platforms gaining traction are one of the key challenges hindering market growth. Online streaming is one of the main substitutes for pay TV. In addition, online streaming services often offer more cost-effective options for accessing content. Furthermore, subscribers can choose from various plans that match their preferences and budget, while cable TV packages may include channels that viewers do not use.
Moreover, live streaming platforms provide on-demand access to content, allowing viewers to watch shows, movies, and events whenever they want without being tied to a fixed schedule. This flexibility contrasts with the scheduled programming of cable TV. Furthermore, online streaming services typically do not require long-term contracts or the installation of equipment, unlike cable TV, which may include installation fees and contract commitments. Therefore, it is positively impacting the market. Hence, such factors are driving the US pay TV market growth during the forecast period.
The Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc: The company offers pay TV such as YouTube TV, which provides live TV from ABC, CBS, FOX, NBC, and popular cable networks.
Amazon.com Inc: The company offers pay TV such as Amazon prime, which includes live tv namely MyZen TV, ManoramaMAX and Museum TV.
AT and T Inc: The company offers pay TV such as Directv which includes entertainment, movies and sports packages.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market in the US is marked by diverse offerings and evolving trends. With a focus on providing tailored programming and premium content, service providers cater to a wide range of consumer preferences, including sporting events, news channels, and exclusive content. Technological advancements, such as Internet Protocol Television (IPTV) and high-definition (HD) viewing, enhance the viewing experience, while over-the-top (OTT) platforms offer additional options for on-demand content. Despite challenges like content piracy and growing OTT competition, Pay TV service providers continue to innovate, offering customizable channel subscriptions, bundled packages, and value-added services to attract subscribers. With the advent of 5G internet access and Ultra HD (UHD) content, the market anticipates further growth and profit generation opportunities.
Also, the market in the US continues to evolve with the integration of advanced technologies and changing consumer preferences. With the rise of video on demand and growing OTT platforms, traditional television services provided by phone companies are facing increased competition. However, Pay TV services still offer advantages such as premium content, local and exclusive programming, and high-quality viewing experiences with features like 4K picture quality. Despite challenges such as bandwidth limitations and the growing popularity of online streaming, Pay TV providers are adapting by offering affordable subscription packages, bonus features, and improved content security measures. As the market continues to digitalize and embrace new technologies like AI and ML, Pay TV remains a significant player in the broadcasting industry, providing omnichannel accessibility and diverse content options for subscribers.
Moreover, it is experiencing dynamic shifts driven by emerging trends and technological advancements. With the rise of phone companies entering the arena, competition intensifies, leading to innovative offerings and premium television experiences. Subscription television continues to evolve with encrypted formats ensuring secure transmissions and a plethora of local and exclusive content catering to diverse viewer preferences. Pay TV technology, leveraging artificial intelligence and machine learning, enhances workplace effectiveness and delivers quality content with high picture resolution. Moreover, the sector witnesses robust growth fueled by affordable subscription costs, reduced rates, and the advent of newer networks and modern channels, particularly in developing countries. As digitalization progresses, Pay TV subscribers benefit from fast internet connectivity and IPTV services, ensuring a seamless entertainment experience across coaxial or fiber optic cables.
US Pay TV Market Scope |
|
Report Coverage |
Details |
Page number |
138 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 1.31% |
Market growth 2023-2027 |
USD 4.8 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
1.51 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphabet Inc., Amazon.com Inc., Anthem Sports and Entertainment, AT and T Inc., Charter Communications Inc., Cogeco Communications Inc., Comcast Corp., DISH Network L.L.C., fuboTV Inc., Lions Gate Entertainment Corp., Netflix Inc., Nexstar Media Group Inc., Olympusat Inc., Paramount Global, SomosTV LLC, Sony Group Corp., Telstra Corp. Ltd., The Walt Disney Co., Warner Bros. Entertainment Inc., and Fox Corp. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by End-user
8 Market Segmentation by Type
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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