Africa’s pay-TV market to hit $6bn

Africa’s pay-TV revenue for the year 2016 stood at $4.4 billion and is forecast to reach $6 billion by 2021.

This is according to market research firm Dataxis, which notes that for the year ending 2016, Africa’s pay-TV subscribers stood at approximately 18.7 million, which represents an increase of approximately two million subscribers compared to the previous year.

Dataxis’ research team has rolled out a new TV tracker product for Sub-Saharan Africa. The service provides quarterly reporting of the pay and distribution statistics for all TV channels active in the region. More than 1 000 channels were analysed and 25% of the channels are generalists, 19% are movies and fiction, and 9% represent sport channels.

Out of the 18.7 million subscribers, the market research firm says 14 million are direct-to-home (DTH) subscribers and the remaining represent mostly pay digital terrestrial television (DTT) with limited cable and IPTV deployments.

The key players for the Sub-Saharan African region are Naspers (approximately 56%), Canal+ (approximately15%) and StarTimes (9%).

“The satellite operator MultiChoice, owned by Naspers, has been the key player in the Anglophone Africa pay-TV market since its launch. However, the new entrant of the year, Econet Media/Kwesé, along with in particular further deployments by StarTimes, will change this configuration,” says Pascal Orhan, chief analyst at Dataxis.

Regarding the DTT migration process, the full transition is still far from completed, says Dataxis.

One of the main issues is distribution of millions of DTT set-top boxes (STBs) to low income households, with associated industrial policies that are leading to further delays, it notes.

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