DTH Market Shifting to Latin America, Other Countries in Southern Hemisphere

Wilmington, DE, Sept. 19, 2013 — The Global Direct-to-Home (DTH) Market continues to grow rapidly but the growth is now shifting from around North America and Western Europe to the developing parts of the world. According to NSR’s Global Direct-to-Home (DTH) report, the worldwide DTH market will grow to $134.4 billion by 2022  but the new source of new subscribers and revenue growth will come from the southern hemisphere  — with India, Indonesia, and Sub-Saharan Africa leading the way.

Blaine Curcio, report author, acknowledges that revenues will still be concentrated in established economies, such as North America and Western Europe. But he adds that India, already at 1 million gross DTH additions per month, and countries like Indonesia and Nigeria are growing exponentially faster than the developed world, making the countries south of the Equator the greenest pastures for DTH.

The report notes that the DTH industry’s growth is not limited to subscribers. It said DTH channels are expected to increase significantly by 2022, with High-Definition (HD) comprising over 1/3 of all new channels; more than doubling in the process. As HD continues to be the new norm for sports and movies, these channels will exceed the current boundaries of developed economies, and growth will be experienced in every region in the world. Beyond HD, a battle is brewing between 3D and Ultra HD (UHD or 4K) channels. By 2022, NSR projects that UHD or 4K will comfortably exceed 3D channels, becoming the new standard for the most premium content.

NSR’s expects the DTH and satellite pay-TV industry to remain healthy – with 313 million subscribers and $134.4 billion in subscription revenues by 2022. Emerging economies south of the equator will fuel growth going forward, as the industry continues to move towards more channels, higher resolutions, and increased requirements for satellite capacity.

The report cited Latin America with current DTH penetration rates at around 14 percent. NSR predicted an increase in uptake of DTH services amongst existing TV households to more than double, from around 22 million in 2012 to 46 million by 2022.

With just under 22 million DTH subscribers in 2012, Latin America represents almost 20 percent of global DTH subscribers. But in the next 3–5 years, it will be the fastest growing region in the world in terms of subscriber and revenue growth, especially among Basic subscribers. Long-term, Premium (HD) subscribers will see growth accelerate, as the middle-class grows throughout the region over the coming years.

NSR said that of the total growth projected growth occurring from 2012–2022, nearly two-thirds will occur from 2012–2017. DTH subscribers will increase by nearly 16 million from 2012-2017, and then will increase by another 9 million or so, despite a higher base year total, from 2017–2022. While overall subscriber growth will be driven by “Basic” subscribers, which will just under double from 18 million to 34 million, “Premium” subscribers will see a far more impressive CAGR, with the number more than tripling from just over 2 million to nearly 8 million by 2022.