Pay TV Revenue is Steadily Declining

As this happens and ad spending continues to spread out into the web, the downstream economic effects will be significant.

A new forecast suggests U.S. pay TV revenue will drop to $56B in 2025, and global pay TV revenue is headed for a 15-year low by then.

Digital TV Research says that U.S. figure will have declined from a peak of $105B in 2015.

And the global number will drop to $152B in 2025 – below even 2010’s $175B. That’s despite the fact that pay TV subscribers will have risen by 345M in that 15-year span.

And the revenue drop despite rising subscribers is due to the declines coming in mature, high-priced markets. The U.S. projected figure of $56B is still far higher than anywhere else.

4 Responses to Pay TV Revenue is Steadily Declining

  1. dad29 says:

    Wow.  About 50% drop.

    AT&T is countering that drop by increasing ‘net charges–realizing that streaming is what’s taking their cable revs away.

  2. jjf says:

    A much more fine-grained method of knowing this change on your local level is to ask your city clerk for their numbers for cable TV franchise revenue, generally a fixed percentage of what your local cable providers collected for pay TV (and not Internet.)  It usually goes into general revenue.

    In most WI cities, though, if you look at the trend, the numbers have not dropped as much as you might think from cord-cutting, or they might even have increased over the last decade due to the offset from the population increasing.

    One effect if those revenues do drop?  Your city may have linked this cable revenue to the funding (at least logically) to the video production department that is recording your city council and county board meetings.

  3. Jason says:

    >One effect if those revenues do drop? Your city may have linked this cable revenue to the funding (at least logically) to the video production department that is recording your city council and county board meetings.

    Does it also go into the operational finding for The Hop?

  4. jjf says:

    No, Jason.  Just politics.  Although many funding sources just plop into “general revenue,” politicians try to make things pay for themselves or at least a particular source to a particular expenditure.  You’ve watched any government meetings?

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