The Traditional TV & Home Video subsegment includes online and offline-generated consumer spending on pay-TV subscriptions, physical home video revenues, public TV licence fees, and TV advertising.
Pay-TV subscriptions encompass cable TV, satellite TV, Internet protocol TV, and digital terrestrial TV services, whereas physical home video is the aggregated revenue generated by all DVD and Blu-ray sales.
Usually, households pay public licence fees in one amount, but this charge can be broken down to TV and radio licence fees. The public TV licence fees subsegment contains the charges used to fund TV broadcasts. This can be paid on a monthly, quarterly, or yearly basis. Public licence fees that are collected in the form of a tax (e.g. income tax in the Nordic countries) are not included in this subsegment. Public licence fees are mainly existing in European countries with some exceptions (e.g. South Africa, Japan, South Korea), in other countries, public tv and radio channels are either supported by taxes (e.g. Finland) or directly by the governments.
TV Advertising includes all ad spending for moving image formats broadcasted over traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered over Internet Protocol networks (IPTV). It covers all ad spending for pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. This segment does not include online TV advertising (e.g., ad spending for TV viewed online and delivered by traditional broadcasters via their websites).
TV users are defined as all individuals who use TV devices. Terrestrial television uses traditional antennas that transmit analog signals. In most parts of the world, analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV. For digital terrestrial TV, television broadcast stations transmit TV content by radio waves to televisions to households in a digital format. Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas. The same technology can also be used to transmit FM-radio, internet, telephone, and other non-television services. Satellite TV covers television programming with the use of communication satellites transmitting to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program. Internet Protocol television (IPTV) is the delivery of television content over Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment. All types of OTT (over-the-top) services, such as TVOD (transactional video on demand) and SVOD (subscription video on demand) are excluded from the definition of the Traditional TV & Home Video segment. Furthermore, electric through-TV-subscription revenues are contained in this subsegment.
In the vast expanse of the global entertainment landscape, the Traditional TV & Home Video market unfolds as a dynamic canvas, shaped by an intricate interplay of technological evolution, cultural nuances, and shifting consumer preferences. As the world hurtles toward an increasingly digital age, this market, once the unchallenged monarch of home entertainment, undergoes nuanced transformations across continents.
Once the undisputed ruler of the living room, traditional TV has found itself in a dance with innovation and evolving consumer behaviors. In the United States, a pioneer in shaping global entertainment trends, the traditional TV market witnesses a recalibration in response to the surge of streaming services. As viewers embrace on-demand content and cord-cutting gains momentum, traditional TV providers adapt, diversifying their offerings to coexist with the digital wave.
Meanwhile, in Japan, where traditional values harmonize with technological advancements, the traditional TV market retains a significant foothold. Japanese audiences, known for their appreciation of curated programming, continue to find solace in the familiar glow of their television screens. The market's evolution is marked by a careful balance, incorporating modern content delivery while preserving the cultural significance of traditional broadcasting.
In India, a nation marked by diverse cultural tapestries and a vast demographic spectrum, traditional TV remains a prominent player. With a surge in affordable smart TVs and satellite broadcasting, the market caters to a wide audience seeking a blend of regional and global content. The traditional TV's ability to bridge the digital divide contributes to its sustained relevance in the evolving Indian entertainment landscape.
The story shifts to Europe, where the traditional TV market mirrors the continent's rich tapestry of languages and cultures. In Western Europe, traditional TV faces the encroachment of streaming services but maintains its stronghold, particularly among older demographics. Contrastingly, Eastern Europe witnesses a more gradual transition, with traditional TV retaining its significance as digitalization progresses.
Turning attention to the Asia-Pacific region, China's traditional TV market showcases resilience amid a digital revolution. While streaming services gain traction, traditional TV remains a fixture, appealing to viewers seeking a curated broadcast experience. In Australia, with its discerning audience, traditional TV competes by offering high-quality content, navigating the balance between tradition and modernity.
Worldwide, the Home Video market experiences a parallel narrative. The era of DVDs and Blu-rays, once the pinnacle of home entertainment, undergoes a transformation. In the United States, digital downloads and streaming services reshape the landscape, offering viewers the convenience of on-demand access. In Japan, where physical media retains a cultural significance, home video adapts to coexist with digital options.
The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective segment. This spending factors in discounts, margins, and taxes.
Modeling approach / Segment size:
The segment size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.
We apply a variety of forecasting techniques, depending on the behavior of the relevant segment. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.
The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.