Pay TV Market Trends

Growth Drivers

• Surging trend of OOT streaming services - The digital era has brought about a huge shift in customer behavior, with consumers progressively preferring on-demand entertainment to scheduled programs. OTT platforms serve an important part of catering to this need by rendering a wide range of material available at the viewer's convenience. For instance, it is predicted that by 2028, over 4 billion users are anticipated to stream OTT videos.
  
  This is because, in the recent world, the demand for traditional TV has been significantly declining, which might also affect the Pay TV market. Due to this, pay TV companies are collaborating with OTT services platforms to satisfy the customer's changing needs and provide them with new content.
• Growing evolution of multiscreen view - With growing knowledge regarding the use of technology the preference for the multiscreen view is also expanding. Also, owing to the growing need to flexibly access content from several screens in the form of computers, television, and more the evolution of multiscreen viewing is expected to observe a boost.
• Rising deployment of AI - The importance of AI and data analytics is growing in various sectors. Furthermore, according to the World Economic Forum, different countries are initiating the adoption of AI for instance, Saudi Arabia has recently stated to be aligning a USD 40 billion AI strategy, for chipmaking to data centers and more. Hence, the deployment of AI is also projected to rise in pay TV.
  
  This is because as pay TV advances beyond cable-based set-top boxes and towards utilizing the internet to distribute programming. Moreover, it becomes more vital than ever to make use of AI-powered video compression technology for distribution.

Challenges

• Growing concern over content security - Due to the potential of content piracy, the primary factor impeding the expansion and utilization of pay TV is content security concerns.
  
  The unsafe nature of pay TV material constitutes one of the significant obstacles to its growth. Copyrighted work might be illegally reproduced and offered for sale on the grey market for a significantly lower price.
• High Price of pay TV
• Surging cord-cutting trend - The increasing number of online video platforms and streaming platforms has led to cord-cutting. Also, customers abandon traditional pay TV subscriptions in favor of cheaper and more adaptable streaming options. This trend represents a significant challenge to the pay-TV business.