The Rise of Streaming: The Decline of Subscription Television

How long have you not found a good movie marathon on subscription television?

The grid of channels and movies or series on cable television, satellite television and Internet television (IPTV) services seems to be designed lately for consumers to flee to streaming services, such as Netflix, HBO Max, Paramount +, Disney +, Amazon Prime and Apple TV+, as well as those of VPN. And they are doing it!

It occurs at the local level with the decrease in subscription television subscriptions, despite the increase in operators, according to data from the Superintendence of Telecommunications (Sutel). And it happens internationally as well.

In the United States, the exclusivity of sports on some streaming channels also slows down content and decreases sports programming on traditional television, so streaming has captured most of the audience for the first time, he warned. Nielsen.

The platforms’ market share and streaming volume increased last June by 6.5% and 22.6%, respectively, propelling Prime Video, Hulu, Netflix and YouTube to new heights. Television’s share fell 3.7% monthly and almost 10% annually, and cable television fell 9% and 3%, respectively.

Streaming platforms continue to increase their market share, both internationally and locally. (Courtesy Netflix)

More local operators

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The Sutel reported in the report presented on July 5 that the commercial offer of subscription television was expanded from 21 to 27 operators, which include national and regional provider companies. Most (75%) also offer telecommunications services and especially Internet.

Most of the companies offer coaxial cable television service (22), followed by IPTV providers (12) and by firms (4) that offer television via wireless media (satellite and microwave).

Total revenue and per service

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More participants, but less cake: income is falling. According to Sutel, in 2022 the total income from subscription television was ¢40.576 million, but that was ¢604 million less than in 2021. The drop in customers and price decreases have to do with this reduction.

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Coaxial services continue to provide the majority of revenue (58%), followed by satellite service (21%) and other technologies (21%).

Their behaviors, however, are heterogeneous: coaxial cable television revenues fell, since in 2021 they were 69% of the total; satellite television revenues also fell (they were 24% the previous year) and other technologies increased (they were 19%).

revenue per customer

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In general, the average income per subscriber grew ¢134 (which is a variation of 1%) from 2021 to 2022, since this last year it was ¢16,304.

Those that increased the most were the modalities of microwave television (¢1,629), followed by cable television and IPTV (¢316), while satellite fell ¢965.

subscriptions

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Regarding the number of clients, in 2022 829,594 subscribers were registered, a decrease of 2.3% compared to 2021. However, the service has lost 54,289 clients compared to 2018. A drop of 6%.

Cable television decreased 23% between 2018 and 2022, while satellite had a 30% reduction in that period. They also fell from 2021 to 2022 by 9% each. On the other hand, IPTV increased five times since 2018 and 31% in the last year.

2023-07-12 15:34:31
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