Free-to-air Services Market Trends

Growth Drivers

• Cost-effective accessibility for consumers: Free streaming services provide access to a variety of content-creating platforms, further attracting more audiences. The growing number of worldwide internet users are emphasizing the free-to-air services market through diverse content consumption. Ad-supported models are opening an option for viewers, allowing them to access content without investing in subscriptions. These FTA services often reach rural areas, where other satellite and cable networking systems are absent. Further fulfilling the demand for media reach affordably through minimal internet connections. No extensive technological knowledge is required to retrieve FTA services due to their simple and user-friendly interface. Often government funds the broadcasters to ensure the accessibility of essential content to every citizen. Additionally making the FTA services preferable to the majority of the population.
• Technological advancement and globalization: The transition from analog to digital broadcasting has improved the signal quality. In addition, new technologies allow diverse presentations including news, sports, and entertainment with programming options. Integration of smart devices has also enhanced the free-to-air services market through their multi-functionality with streaming apps. Advanced video compression technology allows a wide spectrum of channels over the existing bandwidth. DVB-H (Digital Video Broadcasting Handheld) has empowered the FTH industry by streamlining mobile devices. Such portable and convenient features are encouraging consumers to invest in this sector, further inspiring companies to bring more innovations. International content availability on these platforms has also enabled customizable choices, catering according to need.

Challenges

• Declined revenue from the advertisement: Advertising firms are focusing more on digital ad campaigns rather than FTA platforms. The majority of the revenue of this sector is generated through advertising, which is declining with this shift. The rising popularity of ad-free streaming reduces the budget for such programming. OTT platforms are captivating a large section of the audience, leading to lower ad demand. Changing viewer habits including the tendency to avoid live streaming or skip ads dilute the interest of ad agencies.
• Limitations in content acquisition: Declining revenue is directly impacting the budget for licensing fee payment. As a result, FTA service providers are refraining from acquiring expensive TV shows, movies, and sports events. Substantial investment in talent, production, and marketing is being reduced due to budget cuts. Further failing to offer original content to the consumers, who tend to switch to other streaming services. Escalation of renewal costs for existing shows or series adds a financial burden upon broadcasters, impacting the growth of the free-to-air services market.