In 2018, IPTV overtook direct-to-home (DTH) as the second-largest multichannel platform in the world by subscribers after cable TV, accounting for 23.4% of the total market of 1.07 billion households.
Kagan estimates that IPTV is projected to post a compound annual growth rate (CAGR) of 7% subscriber over the next five years, second only to pay digital terrestrial television (DTT) with a projected 8.5% five-year CAGR.
While cable TV is expected to remain the largest multichannel platform globally in the next five years, its subscribers are modeled to decline at 0.3% CAGR by 2023, largely due to migration to IPTV in Asia Pacific and Western Europe.
According to Kagan, the global multichannel market grew by 3.1% year-over-year in 2018. China, India and the USA remain the largest multichannel markets, collectively claiming 57% of the global subscriber total in 2018. China and India alone are expected to account for 50% of the global market by 2023.
Kagan cautioned that global multichannel household growth will continue to decelerate with most markets across Europe, North America and advanced multichannel markets in Asia reaching saturation.
The number of multichannel subscribers worldwide is forecast to grow at a 2.4% CAGR over the next five years to reach 1.21 billion.
Global multichannel economy generated $230.06 billion in video service revenues in 2018, which are projected to increase to $245.41 by 2023.
Multichannel penetration breached 60% by 2018 year-end and is expected to increase to 61.2% over the next five years.
Cord cutting impacted a handful of oversaturated markets, including Singapore and Hong Kong, which led to subscriber losses and household penetration declines.