Cord-cutting continues to hurt Taiwan pay-TV

The total pay-TV service revenue in Taiwan is expected to decline at a compound annual growth rate (CAGR) of 0.5 per cent from $1.18 billion in 2020 to $1.15 billion in 2025 due to the accelerated cord cutting trend in the country and falling pay-TV average revenue per user (ARPU), according to GlobalData, a data and analytics company.

An analysis of GlobalData’s Taiwan Pay-TV Forecasts indicates a tepid growth in the country’s overall pay-TV accounts, and a decline in average monthly spend per pay-TV account from $14.03 to $13.23 over the forecast period 2020-2025, which can be attributed to increasing consumer shift towards OTT video services. Cable TV subscriptions are expected to decline at a CAGR of 1.5 per cent over 2020-2025.

Pradeepthi Kantipudi, Telecom Analyst at GlobalData, commented: “Despite its diminishing fortune, cable TV will remain the leading pay-TV service platform in Taiwan in terms of subscription share during the forecast period and will account for 62 per cent of the total pay-TV subscriptions by the end of 2025.”

GlobalData forecasts IPTV subscriptions to grow at a CAGR of 5.5 per cent over the same period, driven by fixed broadband network expansions to deliver high-speed internet services.

Pradeepthi concluded: “Chungwa Telecom is expected to maintain its leading position in terms of subscriptions through 2025 driven by its strong foothold in the IPTV segment. The operator’s leading position can be attributed to the expanding fibre-optic network, which enables to deliver high quality IPTV content.” Advanced Television