Pay TV Market Analysis US - Size and Forecast 2024-2028

US Pay TV Market Size 2024-2028

The US Pay TV (Television) market size is estimated to increase by USD 5.9 billion and grow at a CAGR of 1.57% between 2023 and 2028. The market is experiencing significant growth due to several key trends. The high demand for live programming and sports content is a major driving factor, as viewers continue to seek real-time access to their favorite events. Additionally, the ease of use and convenience offered by  broadcasting cable TV services are benefiting the market, as consumers prefer the reliability and quality of traditional pay TV over free, over-the-air options. Online streaming services are also gaining traction, providing consumers with more choices and flexibility in their viewing habits. However, the market faces challenges such as increasing competition from streaming services and the rising cost of programming, which may put pressure on pay TV providers to offer more competitive pricing and innovative features to retain subscribers. Overall, the pay TV market is expected to continue growing, driven by consumer demand for high-quality content and the evolving landscape of media consumption.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

By Technology

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 34 billion in 2018. 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.

Market Dynamics and Customer Landscape

The market is witnessing significant growth due to the increasing demand for premium television services and subscription television services. Cable and satellite have been the traditional modes of delivery for Pay TV, but broadcasting technologies such as IP-based delivery and over-the-top (OTT) streaming are gaining popularity. Value-added services like customized channel subscription, high-definition content, on-demand content, and bundling services are driving the market growth. Broadband services have become an essential companion to Pay TV, enabling multi-device viewing and personalized content recommendations through artificial intelligence (AI). Disposable incomes have been a crucial factor in subscriber acquisition, with exclusive sports channels and entertainment channels being major drawcards. Subscription costs remain a concern, but the availability of exclusive content, video on demand, and tailored programming through hybrid set-top boxes has helped mitigate this. The market is expected to continue growing, with HD viewing and OTT platforms becoming increasingly important. Advertising remains a significant revenue source, with broadcasters leveraging data to deliver targeted ads to viewers.

Key Market Driver

The increase 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.

Moreover, 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 during the forecast period.

Significant Market Trends

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.

Major Market Restrain

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.

Market Customer Landscape

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

Who are the Major Market Companies?

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:

• Anthem Sports and Entertainment
• 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.
• Fox Corp.

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.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Technology Outlook
  • Satellite TV
  • Cable TV
  • IP TV
• End-user Outlook 
  • Household
  • Commercial
• Type Outlook 
  • Postpaid
  • Prepaid

Market Analyst Overview

The market 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. 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, the pay TV industry is evolving rapidly, driven by increased television viewership and watch time. With the rise of Ultra HD TV services and 4K broadcasting, viewers expect high-quality content delivered via high-speed internet. Connected devices enhance user experience across delivery platforms like digital terrestrial broadcast, satellite broadcast, and over internet protocol television. The shift towards cable television broadcast and over the top television is reshaping the landscape, as consumers seek more flexible subscription packages. Cable TV ads and subscription-based payment models encourage upselling and cross-selling of services. As public broadcasting competes with commercial broadcasting, newer networks and modern channels are emerging. Bonus features like cloud-based DVRs and interactive TV services are now essential for attracting DTH subscriptions. The integration of machine learning (ML) enhances content delivery and content security, making digital broadcasting more reliable. With 5G internet access, residential home entertainment systems are set to redefine consumer electronics.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across the US
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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