Owing to the high penetration of tablets and smartphones among consumers, the demand for advanced services has also considerably increased. According to a recent survey, in 2016, the number of internet users has risen to approximately 3.4 billion with a penetration rate of over 46%. The development of advanced tablets and smartphones with enabled television service is likely to fuel the rate of mobile TV subscriptions.
According to a report published by Transparency Market Research (TMR), the global mobile television market is likely to expand at a 9.5% CAGR from 2016 to 2024. In 2015, the market stood at a valuation of US$7.69 bn and is estimated to be worth US$17.02 bn by the end of 2024. Regionally, Asia Pacific held the leading share in 2015 in the global mobile TV market is projected to maintain a lead until 2024. The rising demand for mobile television in Asia Pacific is likely attributed to the mounting adoption of pay TV services owing to the increasing number of television handsets in the region.
Which regions are expected to emerge as the leading contributors to the growth of the global mobile television market?
The mobile TV market is spread across regions such as Latin America, Asia Pacific, Europe, North America, and the Middle East and Africa. Of these regions, Asia Pacific emerged as the most lucrative market owing to the high penetration of TV-enabled smartphones coupled with the rising subscriptions of mobile television services. Furthermore, the mobile TV markets in the Middle East and Africa and Latin America are expected to grow at a significant rate as a result of the improving economic strength of the countries in these regions and mounting investments in long-term evolution (LTE) networks.
Developed countries are also taking initiatives to expand mobile TV services and enhance their adoption among various sections of consumers. For instance, recently, a leading multinational telecom conglomerate of the U.S., AT & T, added direct TV mobile and TV everywhere services to its existing list of services. This development is expected to increase the subscription of mobile TV services to 30 million mobile phones in the U.S.
How are alternative mediums likely to affect the growth of the mobile TV market?
Alternative mediums such as online video streaming platforms and pay websites are expected to impede the adoption of mobile TV in the forthcoming years. Many online channels and websites provide free video services to consumers. All that consumers have to do is avail an internet pack. Moreover, government laws concerning net neutrality are further expected to emerge as challenges for mobile television service providers. The high cost of mobile TV subscriptions being provided by leading telecom operators is another factor that is likely to inhibit the global mobile TV market growth.
Which service is likely to create profitable growth opportunities for service providers?
Telecom operators in the global mobile TV market provide services such as pay TV and free to air services. Among these, the most popular services are the pay TV services which also include video on demand. The rising demand for premium video content on regional channels such as movies and live sports through mobile TV services is anticipated to fuel the adoption of video on demand (VoD) services. However, the share of free to air services is likely to decline over the coming year as a result of the shifting consumer preference towards premium video and television content.