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Online Radio Segment Projected to Have a Three-Fold Growth in the Global TV and Radio Subscription Market During the Period 2016-2020, Reports TechnavioTechnavio's latest report on the global TV and radio subscription market provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline. The global TV and radio subscription market is projected to grow at a CAGR of 5.15% and 5.35% respectively. Increasing development in the IPTV (News - Alert) segment is expected to accelerate the growth of the global TV subscription market during the forecast period. The emergence of the pick-and-pay pricing strategy is another major factor driving the market. Whereas, in the global radio subscription market, the online radio market is projected to have a three-fold growth during the forecast period, consequently leading to the growth of the market. Based on geography, the market is segmented into the following regions: Americas, EMEA, and APAC. "In 2015, the Americas occupied the largest share in the global radio subscription market due to increased digitalization of radio station and high penetration of smartphones," says Ujjwal Doshi, a lead analyst at Technavio for research on media and entertainment services. The top four emerging trends driving the global TV and radio subscription market according to Technavio research analysts are:
Increased TV subscription in South America The TV subscriber base in South America is likely to grow at a CAGR of 13% during the forecast period. Countries such as Brazil, Chile, Peru, Paraguay, and Colombia, which have started switching to digitalization, will play a significant role in increasing the subscription share of this region. Lack of advanced coaxial cable and wireline copper infrastructure in most South American counties is one of the biggest barriers in providing uninterrupted transmission of digital content. This will encourage vendors to expand their business and leverage the less-tapped TV subscription market in the region. However, macroeconomic problems and the growing number of TV subscription providers in the region are expected to restrict the market's growth in the region. High inclination for multi-screen services A large number of TV subscription operators are moving into IPTV. Vendors are becoming more competitive and are implementing various strategies and providing bundled offers to ensure superior customer satisfaction by rendering services with the convergence of multiple screens. Smartphones and devices have undergone drastic changes and have become the most preferred form of media. Their adoption rate is expected to increase during the forecast period. APAC accounts for the highest number of mobile device shipments across the globe. "In 2015, the total shipment of mobile devices, including PCs, tablets, and smartphones was nearly 1.1 billion units and is expected to grow further during the forecast period, supporting the market's growth," says Ujjwal. Increased popularity of pick-and-pay services Pick-and-pay services are budget-friendly and have gained high traction in a short span. With OTT services gaining prominence and giving intense competition to TV subscriptions, pick-and-pay services are enabling vendors to control the increasing churn rate of TV subscribers. However, according to market experts, the pick-and-pay strategy leads to the elimination of numerous channels, eventually increasing the cost for the users. The expectations from content providers will be high in terms of developing and delivering better content, and customers will have the advantage of choosing content as per their interest. Delivering high-quality content will increase the cost for content providers, directly impacting the customers. High adoption of internet radio Online radios are one of the fastest growing music platforms that eliminate the need for a dedicated device. Users can stream music on internet-connected devices like tablets, phones, and PCs. An increasing number of individuals are accepting the access-based approach and are subscribing to digital music libraries stored on the cloud. Vendors such as Pandora, Spotify (News - Alert), and iHeartRadio offer their services over the internet and cater to the interests of a large part of the population. The increase in the internet penetration, which was more than 46% in 2015, and the availability of mobile internet in 3G and 4G format have further increased the demand for online radio. Browse Related Reports:
Do you need a report on a market in a specific geographical cluster or country but can't find what you're looking for? Don't worry, Technavio also takes client requests. Please contact [email protected] with your requirements and our analysts will be happy to create a customized report just for you. About Technavio Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies. Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users. If you are interested in more information, please contact our media team at [email protected].
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