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Pay TV tipped to trump Netflix in CEE

NATPE: Polish customers have helped drive pay TV revenues across Central and Eastern Europe (CEE) over €5bn (US$5.5bn), with Netflix’s launch in the country likely to have little impact on the market, according to a report released today.

Pay TV revenue in CEE totalled €5.02bn in 2015, said media analyst IHS’s report, which claimed a lack of local content and a comparatively high monthly fee would stem uptake of the streaming giant in Poland.

The report, titled Central and Eastern Europe Pay TV Market Monitor and published on the first day of CEE conference Natpe Budapest, said 75.9 million homes in CEE had pay TV in 2015, an increase of 31% since 2010.

Cable accounted for 48% of pay TV subscribers in 2015 compared with 38% for satellite and 13% for IPTV, with the former predicted to keep the largest share until 2020.

Vladimir Ryazantsev, analyst at IHS Technology and author of the report, said Poland topped pay TV receipts in the region despite the country not having the largest population, with revenues up from €1.62bn in 2014 to €1.69bn in 2015.

The report added that Netflix, which launched in Poland in January, would “not have a significant impact on the cable/DTH/IPTV subscriber base unless it decreases the price, adds Polish subtitles and adds more Polish content.”

Elsewhere, Romania was found to have the highest pay TV saturation, at 93%, while Russian pay TV revenue was also up when measured in the local currency.

Revenues in Russia increased by 20% in 2015 if measured in roubles but suffered a 9% decline in euros. The Russian rouble depreciated by around 33% against the euro and 59% against the US dollar in 2015 following political and economic turmoil.

Changes to Russian media laws, including the introduction of a 20% cap on foreign ownership, have already seen firms such as Modern Times Group selling their Russian interests to comply.

National Media Group has been one beneficiary and is now estimated to own 80% of Discovery, Turner and Viasat channels in Russia, which together account for 20% of pay TV channels’ viewing time.

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